The Central Bank seeks to promote the effective and efficient development and functioning of the insurance sector. To this end, Companies are required to implement comprehensive corporate governance frameworks to ensure their resiliency and enhance overall financial stability. In particular, Companies and Groups must have robust corporate governance policies and processes covering, but not limited to, strategy, organizational structure, the control environment, risk management responsibilities and compensation of Boards and Staff.

In implementing this Regulation and the accompanying Standards, the Central Bank's goal is to ensure that Companies' approaches to corporate governance are in line with leading international standards. The Central Bank expects that each Company will establish and implement a corporate governance framework, which provides for sound and prudent management and oversight of its business and adequately recognizes and protects the interests of policyholders.

This Regulation and the accompanying Standards establish the overarching prudential framework for corporate governance. Regulatory requirements for selected governance areas such as risk management, internal controls, compliance, outsourcing and financial reporting are established in separate Central Bank Regulations and Standards.

This Regulation and the accompanying Standards are issued pursuant to the powers vested in the Central Bank under the Central Bank Law.

This Regulation and the accompanying Standards supplement Federal Law No. (6) of 2007 On the Organization of Insurance Operations, the amendments thereof and its Executive Regulations, the Insurance Authority's Board of Directors' Decision No. (19) of 2020 Concerning the Guidance Manual for Insurance Companies and Related Professions to Submitting the Data, information and Supervisory Reports, the Insurance Authority Board of Directors' Decision number (25) of 2014 Pertinent to Financial Regulations for Insurance Companies, the Insurance Authority Board of Directors' Decision number (26) of 2014 Pertinent to Financial Regulations for Takaful Insurance Companies, and The Insurance Authority's Board of Directors Resolution No (4) of 2010 Concerning the Takaful Insurance Regulations. Additional requirements may be imposed pursuant to decisions to be issued by the Central Bank in this regard.