Tawuniya Insurance Company, an insurer in the MENA region, in collaboration with notable global and local partners including Google, Plug and Play, Monsha’at, and Code, has launched an innovative, intensive 12-week virtual accelerator program — InsurAi — to nurture technology startups across the Middle East and North Africa. The initiative underscores Tawuniya’s commitment to fostering innovation and supporting the vibrant startup ecosystem in the region.

The program, which started on Dec. 7, is inviting applications from technology startups eager to elevate their business models through expert guidance and potential funding opportunities. Focused on artificial intelligence and entrepreneurship, the initiative will select 10 promising startups to connect with global experts, elevate brand positioning, and advance in their spheres. On the final Demo Day, slated in the middle of 2025, the winning startup will receive $100,000, with $75,000 and $50,000 awarded to the second and third places, respectively. 

This initiative aligns with Tawuniya’s strategic objective to champion cutting-edge solutions that enhance customer experiences and streamline insurance processes.

Abdullah Alshargi, group CTO at Tawuniya, said: “Our collaboration with global leaders like Google and Plug and Play, along with government entities Monsha’at and Code, underscores our commitment to leveraging advanced technologies and entrepreneurial spirit within the MENA insurance market. This program is more than a competition; it’s a gateway for startups to innovate and potentially lead with their solutions. Through this initiative, we aim to harness the significant potential of local talents, fostering digital transformation and innovation across the region.”

This accelerator program is powered by a robust partnership between Tawuniya and industry giants. Google brings its cutting-edge technology and vast expertise in digital innovation while Plug and Play, renowned for their global accelerator programs, will administer the accelerator, ensuring participants receive top-tier mentorship and support. Monsha’at and Code, as governmental entities, will bolster the program’s reach and effectiveness through strategic community outreach and essential resources aimed at fostering SMEs and startups within the region. This collective effort is designed to create a dynamic environment that propels technological and entrepreneurial growth.

As Tawuniya continues to lead in digital transformation within the insurance sector, this program further solidifies its role as a pillar of support for technological advancements and entrepreneurship in the region.

KPMG has released a new guide titled “Model Risk Management: A Guide for Financial Institutions in Saudi Arabia,” which serves as an essential tool for the Kingdom’s financial sector amidst its rapid expansion and digital evolution. This publication arrives at a pivotal moment, to equip financial institutions with the necessary strategies and insights to navigate through an increasingly complex industry landscape characterized by technological advancements and regulatory shifts.

Shadi Abuserryeh, partner and head of financial risk management at KPMG in Saudi Arabia, said: “As Saudi Arabia’s financial sector continues to grow and transform, the need for robust model risk management has never been more critical. This guide provides the tools and insights necessary for banks to navigate these regulatory landscapes, ensuring they are well-equipped to manage risks effectively and maintain trust among their stakeholders.”

The guide addresses the growing dependency of banks in Saudi Arabia on third-party services for model development and validation. It underscores the critical need for thorough documentation and continuous real-time monitoring to ensure the reliability and transparency of these externally developed models. Emphasizing robust governance, the guide advocates for vigilant oversight of both in-house and outsourced models, enabling institutions to proactively detect and address potential issues before they escalate.

A significant focus is placed on the integration of advanced models that account for climate risks and expected credit losses, which often rely on external variables and limited historical data. This complexity requires a sophisticated blend of qualitative approaches and expert judgment to ensure accuracy and reliability. 

The guide also prepares financial institutions for forthcoming regulations from the Saudi Central Bank, similar to those recently enacted by the UAE’s Central Bank, aimed at elevating model quality and mitigating associated risks.

The document further explores the heightened risks during periods of exceptional growth or economic stress. Factors such as rapid market shifts and changing consumer behaviors can increase data volatility, challenging the accuracy of model predictions. The scarcity of robust historical data during these times diminishes the reliability of models, and the growing complexity needed to capture such dynamic environments can lead to errors and complicate interpretation efforts. Additionally, as the reliance on these models intensifies for critical decision-making, the likelihood of inaccuracies rises, potentially leading to rushed development and validation processes.

Despite these challenges, the guide identifies significant opportunities for the Saudi financial sector. “By effectively addressing these issues, institutions can enhance their risk management capabilities and resilience against adverse conditions. The adoption of cutting-edge technologies offers potential improvements in efficiency and precision in managing risks. Furthermore, compliance with new regulatory standards can boost governance and transparency, fostering greater trust among stakeholders,” said Ovais Shahab, head of financial services — Saudi Arabia at KPMG Middle East.