The Insurance Authority Announces Transition to Risk-Based Capital Framework
هيئة التأمين تعلن عن الانتقال إلى إطار رأس المال المبني على المخاطر
The Insurance Authority announced the transition to mandatory application of the Risk-Based Capital (RBC) framework as of 1 January 2027, replacing the current framework for measuring the solvency of insurance and reinsurance companies. The new framework allows capital to be reinforced through issuance of subordinated debt instruments and targets raising risk-based capital in the insurance sector from SAR 25 billion to SAR 50 billion by 2030. A parallel-run phase began in January 2026, under which insurance companies must calculate solvency under both the new and current frameworks per guidance issued by the Authority, with the option to apply the standard formula or develop a full or partial internal model subject to prior Authority approval.
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