Saudi Reinsurance Company (Saudi Re) and Saudi Housing Guarantee Services Company (Damanat) have signed a Memorandum of Understanding (MoU) that establishes a collaboration framework between the two parties with the objective of developing insurance and reinsurance solutions for the mortgage financing sector.
In a statement posted on its website, Saudi Re says that the MoU paves the way to design innovative risk management solutions that support the growth and stability of the mortgage financing sector, the housing program, and the financial sector’s development. As part of the MoU, both companies will collaborate on the technical matters for insurance product development and reinsurance services, including pricing models, underwriting mechanisms, and claims management.
The partnership also seeks to align with international investors’ expectations and foster Saudi-international collaborations to enhance risk management in the mortgage financing industry.
Commenting on the agreement, Mr Ahmed Al-Jabr, CEO of Saudi Re, emphasised that the MoU lays the foundation for a constructive partnership that aligns efforts for sustainable growth in the insurance and mortgage financing sectors. He expressed Saudi Re’s keenness to work with Damanat to develop innovative solutions that contribute to both industries.
Meanwhile, Mr Osama Al-Othman, CEO of Damanat, highlighted the importance of collaboration between national companies in reinforcing insurance as a key driver of financial stability in critical economic sectors. He noted that this MoU marks the beginning of a strategic partnership that aligns with Saudi Arabia’s Vision 2030.