Kuwait: Govt sets up committee to audit insurers
Source: Middle East Insurance Review | May 2019
The Minister of Commerce and Industry and Minister of State for Services, Mr Khalid Al-Roudhan, has formed a committee to check the accounts of all insurers to ensure the validity of their financial transactions.
Sources pointed out that the government aims to detect any violations that may have been committed by the sector, especially after the Kuwait Insurance Federation accused some insurers of failing to meet technical and financial requirements. The federation had said that some insurers are threatened by insolvency and might fail to meet their financial obligations to individuals or companies, after offering low pricing, according to a report in Arab Times.
The committee will prepare a plan of action, which will include inspecting the records of insurers in an effort to ascertain the number of policies issued by them, their pricing, and impact on liquidity, the sources said.
The committee will ensure that all required terms and conditions are met. It will also look into the bank accounts of insurers, to ascertain the availability of money in accordance with their business, in addition to identifying their investments and the quality thereof, and whether they realise losses or profits, the sources said. M