The Insurance Regulatory Unit (IRU) in Kuwait has announced the start of the pilot phase of the updated version of its "Beema"online system, which issues compulsory motor third party liability (CMTPL) insurance policies.
The platform is part of the IRU’s efforts to promote digital transformation and develop oversight mechanisms for the insurance sector.
In a circular to insurers licensed to offer compulsory vehicle insurance, the IRU said that hard copies of CMTPL insurance policies will be discontinued. CMTPL policies are to be issued only through the Beema platform. Any policy issued outside it will not be considered valid.
The new system also allows an insurer to grant its contracted brokerage companies the authority to issue insurance policies in the company’s name, through sub-user accounts on the Beema platform. As part of the preparations for the implementation of the new system, the IRU stressed the need for insurance companies to organise workshops for their contracted intermediaries to train them on how to use the updated platform.
The IRU confirmed that use of the platform will not affect the channels for submitting insurance applications by customers, provided that the final issuance process is done exclusively through Beema.
Electronic payments are mandatory for issuing the CMTPL insurance policies. The IRU circular emphasises that no cash payments will be accepted.
Tech-supported supervision
Mr Hamad Abdullah Tifouni, the IRU’s Acting Director of the Information Systems Department, said that the regulator is leveraging technology to develop supervisory tools, which support digital transformation and raise the efficiency of supervision.
He added that the Beema system reduces attempts to forge insurance documents and manipulate prices, in addition to enhancing the safety and regulation of policy issuance procedures. The system also allows easier access to data and helps to increase the accuracy of statistics. The availability of accurate and reliable data contributes to improving the level of oversight of the insurance sector and supports decision-making based on clear and reliable information.