Foreign companies operating in Kuwait are now exempt from certain requirements for establishing insurance and reinsurance companies in the country, according to a ministerial decision issued in early April by Finance Minister and Acting Minister of Commerce and Industry, Mr Anas Al-Saleh.
Under this ruling, foreign insurers operating in Kuwait do not need to establish a stockholding company with a capital of KWD5 million (US$16.5 million) capital for non-life and life operations, and KWD15 million for reinsurance business, reported the business news website, Argaam.
The ministerial decision also outlines other regulations to be followed by foreign insurance companies that have branches in Kuwait. These include having to furnish proof that they are registered and licensed in the country where they are headquartered, and having to prove on a yearly basis that the licence in their home country remains valid. The documents of proof have to be submitted to the Insurance Department of the Ministry of Commerce and Industry.
The branches of foreign insurance companies have to submit financial information to the Ministry, including their annual profit and loss accounts. The annual financial results must be published in two local daily newspapers, in Arabic and English.
In addition, the branches have to inform the Insurance Department in writing about the appointment of a branch manager or managing director within one month of the date of appointment. The branch manager or managing director in Kuwait must have all the powers necessary to manage a branch, including powers to issue insurance policies, pay claims, and represent the company at the Insurance Department and before the Kuwaiti authorities and other governmental and non-governmental agencies with respect to the work and management of the branch.
Premiums in Kuwait increased by 9.3% to KWD303 million in 2014, compared to KWD277 million in 2013, said local media reports citing data from the Ministry of Commerce and Industry.
Local insurers dominated the market with KWD270 million in premiums, or 89% of the total.
There are more than 30 insurance companies operating in Kuwait, around a third of which are foreign companies.
KWD1 = US$3.31