Insurance Regulatory Authority Refers 3 Brokerage Firms to Public Prosecution
The Insurance Regulatory Authority referred three insurance brokerage firms to the Public Prosecution for legal action regarding alleged crimes, and issued warnings to four other insurance companies.
Translated by Qiyas from النهار — Original source
As part of its ongoing efforts to strengthen oversight of the insurance sector and consolidate the principles of compliance with the laws governing it, the Insurance Regulation Unit announced the referral of three insurance brokerage companies to the Public Prosecution. This action is part of the supervisory and legal measures taken to protect the rights of policyholders, beneficiaries, and market participants. The Unit clarified that the referral of the three brokerage companies to the Public Prosecution is to take the necessary legal actions regarding allegations of crimes attributed to them, based on the provisions of Law No. (125) of 2019 concerning the regulation of insurance, its executive regulations, and their amendments.
In the same context, the Unit issued warnings to four insurance companies due to violations of the provisions of the aforementioned law, its executive regulations, and related decisions, emphasizing the necessity of rectifying the cited violations to avoid suspension measures in accordance with applicable legal frameworks. The Unit stressed the need for all companies and entities under its supervision to comply with the relevant laws, regulations, and decisions, reaffirming its continued exercise of its supervisory role and the taking of necessary legal actions against any violations, thereby ensuring the protection of market participants’ rights and enhancing compliance and discipline in the insurance market.
In this regard, Talal Al-Moharib, Director of the Legal Affairs Department at the Insurance Regulation Unit, stated: “Protecting the rights of insurance policyholders, beneficiaries, and market participants is a fundamental priority for the Insurance Regulation Unit, which we strive to translate into practice by developing regulatory and supervisory frameworks, and issuing decisions and circulars that ensure the protection of all parties’ rights and enhance compliance with effective legislation.” He added: “The Unit will not tolerate taking necessary legal actions against any entity proven to have breached its legal obligations or endangered the rights of market participants, in line with its responsibility to ensure the safety of the sector and enhance confidence in the insurance system.”
The Insurance Regulation Unit confirmed that these measures are an extension of its efforts aimed at establishing a more disciplined and transparent insurance environment, enhancing the effectiveness of supervision and compliance, and elevating professional and regulatory practices in accordance with global best standards and practices, thereby contributing to the protection of policyholders’ and beneficiaries’ rights, and supporting the stability and sustainability of the insurance sector.
