Dear Audience, SAMA undertakes annual supervisory visits to insurance companies to make sure that they operate efficiently and professionally and that they fulfill technical and regulatory requirements to ensure better profitability and customers’ satisfaction. SAMA also regularly monitors soundness of insurance companies’ financial positions to ensure that they are able to meet their contractual obligations. SAMA will continue to exert supervisory and control efforts using all means to ensure the optimality of insurance operations. BIS central bankers’ speeches  1  Dear Audience, Insurance industry has progressed well in recent years as its contribution has grown equivalent to one percent of GDP in 2010. Total estimated written premiums have increased by 12.4 percent to Rls 16.41 in 2010 from Rls 14.6 percent in 2009. This clearly indicates growing awareness about various insurance products including public insurance products, health insurance and protection and savings insurance by individuals and various organizations operating in the Kingdom. Insurance claims are projected to have reached Rls 4.7 billion in 2010 compared to Rls 5.8 billion in 2009. Insurance claims that are made against damages are integral part of insurance activities. They contribute to reassuring, stabilizing, and securing individuals and organizations. Recent rainfalls that had caused substantial losses in the city of Jeddah have proved the importance of insurance and its benefits and compensations for property losses. SAMA has directed all insurance entities to promptly compensate customers according to their insurance policies, and facilitate procedures for receiving claims and processing them.

At over 400 USD/ounce, the gold price was at a seven-year high at the beginning of December. Because of the weak dollar, the gold price increase in francs was more modest. However, its peak of approximately 17,000 CHF/kg was still the highest for several years. The main reason for this rise was persistently modest hedging activity by gold producers. 2  BIS Review 58/2003  Equity markets International equity markets exhibited a positive course overall, steadily making up lost ground after their mid-March low (see graph 3). As the equity environment began to present a perceptibly brighter picture, turnover also picked up. This, together with the more confident investor sentiment, reduced volatility. The ambitious profit expectations now reflected in share prices suggest that market players are optimistic about the economic situation and the corporate environment. To sum up, the financial markets are currently influenced by a complex interplay of factors: a globally synchronised economic recovery is taking place against a backdrop of external imbalances. An autonomous economic recovery outside of the US - underpinned, not least of all, by supply-side reforms - would help substantially to redress these imbalances. Key features of the SNB’s future investment and risk control process The SNB’s investment activity is subordinated to monetary policy and is determined by the criteria of liquidity, risk and returns. The new National Bank Law will extend the SNB’s investment opportunities. The current National Bank Law (NBL) limits eligible investments to gold and fixed-interest securities, and eligible borrowers to states, international organisations and banks.