The Saudi Arabian Monetary Agency (SAMA) announced today that it has given a final warning to the Saudi-Indian Cooperative Insurance Company (WAFA) for non-compliance and lack of commitment to maintain the adequacy margin required by the statute, by 30 September 2018, and has appointed an independent consultant, at the expense of the company approved by the SAMA to provide advice, in this regard. In the event that the company does not take effective measures to adjust the margin of adequacy, in accordance with the requirements of the executive regulations of the Cooperative Insurance Companies Control Law or the company's exposure to a sharp decline in its financial adequacy, SAMA shall take statutory procedure (s) guaranteed by the Cooperative Insurance Companies Control Law and its Executive Regulations, in order to protect the rights of the insured and the beneficiaries of the insurance coverage, including preventing the company from accepting new shareholders, investors or subscribers in any of its insurance activities or limiting them, SAMA explained. SAMA also disclosed that it has previously addressed the company with several letters of different dates over the past years, regarding the lower adequacy margins and the need to comply with the requirements of the set forth adequacy margins.
