(MENAFN) As part of a drive to create a smaller number of stronger market players operating in the country, Saudi Arabia's central bank is preparing tougher rules for insurance companies, according to sources.
A new supervisory framework will be introduced in the coming months that will force insurers to boost capital significantly as well as improve internal risk controls.
"They (central bank officials) said half of the companies that are here today will not be here, they want stronger companies in the market", sources said.
The Saudi insurance sector has come under pressure as the economy encountered a recession this year.
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