Kuwait: First Takaful restructures to deal with losses
Source: Middle East Insurance Review | Jul 2015
First Takaful Insurance Co (FTIC) has rebranded itself and is restructuring to deal with accumulated losses, said media reports.
Speaking at a press conference to announce the new brand, CEO Hussain Ali Al-Attal, said that FTIC is emphasising on service with its new slogan, “Customer service in all respects”, launched in conjunction with the 15th anniversary of its establishment.
The company had a 15% share of the takaful market in Kuwait last year and 4% of the overall insurance market. Premiums collected totalled KWD10.6 million (US$35.23 million) last year, up 43% from the previous year.
However, losses for 2014 more than doubled to KWD5.8 million, compared to losses of KWD2.8 million for 2013, which were due to an impairment loss of KWD1.59 million in its associate at the end of the year.
Mr Al-Attal said with the restructuring and efforts to improve performance, FTIC is on track to profitability. It has implemented a five-year plan to increase its market share without compromising on the quality of business and underwriting, by expanding its sales channels and focusing on customer service.
FTIC now has a dedicated customer service department equipped with professional staff, and has increased the number of branches and sales points to nine locations. “By expanding sales channels and focusing on customer service, FTIC has succeeded in maintaining a high retention ratio and securing new business,” he told Middle East Insurance Review in an interview last year.
Stiff competition in the Kuwaiti market, which has more than 30 direct insurers, has pulled rates downwards and affected services. Mr Al-Attal said that insurers need to base their pricing on actuarial studies to stop the cut-throat pricing.
KWD1 = US$3.32