Interview: Ali Al Hendal, CEO, GIG Kuwait, on how digital tools and regulatory reforms are transforming distribution
How will the 2025 rules on mandatory policies and QR-based verification reshape distribution, fraud control and customer trust?
ALI AL HENDAL: Standardised policy formats will reduce ambiguity, while QR verification – which comes into effect after the implementation period and applies to eligible mandatory policies – allows policies to be checked for authenticity quickly and reliably. That is a decisive step in tackling fraud, which has weighed on margins and customer confidence. The adjustment period may be challenging but the outcome will be a healthier, more transparent market.
What structural barriers to higher penetration remain most pressing, and which innovations could unlock growth over the next two years?
AL HENDAL: Insurance penetration in Kuwait has historically been hindered by reliance on compulsory lines, combined with relatively low awareness of the benefits of discretionary coverage. There is also a cultural perception challenge – many individuals and smaller businesses do not view insurance as a necessity unless it is legally required. Breaking through this barrier requires simpler, clearer products; better financial literacy; and more creative distribution. Technology will help: digital channels allow products to be delivered at lower cost, while data analytics make it possible to tailor premiums more fairly. If the market can combine innovation with effective customer education, penetration rates should begin to rise over the next few years.
To what extent does recent reinsurance growth point to sustained sector strength?
AL HENDAL: The strong growth and profitability seen in reinsurance last year speak to disciplined risk selection and a supportive pricing environment. For example, in 2024 achieved +9% gross written premium growth to $325.8m, along with a 91% combined ratio.
This is encouraging, but we have to be realistic about the cyclical nature of the industry. Geopolitical risks, natural catastrophe exposure and global capital flows all influence reinsurance pricing, and these factors can change rapidly. However, regional players are now building deeper technical expertise and more robust balance sheets. Even if the cycle softens, the market is better positioned to weather it. The lesson for the sector is that resilience depends less on chasing growth and more on underwriting discipline and capital strength.
Where are opportunities to expand beyond compulsory lines, given the push for diversification?
AL HENDAL: The market is reaching a point where reliance on motor and health insurance is not enough. Voluntary lines are where we will see the most growth. Small and medium sized-enterprises form the backbone of the economy but remain underinsured. Cyber-risk is gaining traction as businesses digitalise and regulators push for stronger data protection. Personal covers have headroom, as demographics shift and disposable incomes rise. Each of these areas requires new products and new ways of engaging customers – making insurance relevant to their real risks rather than something purchased only because the law requires it.
In what ways can insurers balance the tightening compliance regime with the digitalisation drive?
AL HENDAL: The regulator’s agenda is very clear: higher standards, greater transparency and stronger consumer protection. That is positive for the long-term credibility of the industry. The challenge lies in implementing these requirements without adding unnecessary friction for customers. This is where digitalisation plays a role. By embedding compliance into digital platforms, insurers can meet regulatory requirements while enhancing service. Customers will experience compliance not as bureaucracy but as clarity and convenience. Firms that succeed will be those that treat regulation as a prime-time opportunity to innovate and differentiate.
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