Insurance
From The Report: Kuwait 2019
View in Online Reader

Kuwait’s insurance sector has expanded rapidly in recent years, with numerous new entrants competing and driving down premium prices. This has led to concerns that companies are booking high profits at the risk of not keeping enough in reserve to meet future payouts on policies. To counter these worries, a new law was passed in July 2019 and it is likely to have a profound impact on the sector by putting the industry on a sustainable long-term trajectory. However, with the law pushing for increased reserves and stricter regulation, flatter profit growth and a major restructuring of the market could be seen over the next two to three years.

Articles from this Chapter

Overview

Extending coverage: After two decades of rapid growth, the industry charts a more sustainable path
OBG
plus

Kuwait’s insurance sector has expanded rapidly in recent years, with numerous new entrants competing and driving down premium. This has led to concerns that companies are booking high profits at the risk of not keeping enough in reserve to meet future payouts on policies. To counter these worries, a new law was passed in July 2019 which is likely to have a profound impact on the sector and put the industry on a sustainable long-term trajectory (see analysis). However, with the law pushing…

Analysis

Worth the wait: A long overdue law brings big changes to the sector
OBG
plus

A new insurance law was approved by the Kuwaiti Parliament in July 2019 to support the maturation and growth of the sector. While premium are likely to rise in the short term and a gradual consolidation of the sector is expected, a more viable, lower-risk environment is set to emerge in the coming years. Modern Solutions The insurance market in Kuwait was previously governed by a law dating back to 1961, thus the legislation has been widely regarded as needing modernisation. According to…

Overview

Digital disruption: Insurance technology (insurtech) taps premium growth potential in emerging markets
OBG
plus

Two of the biggest trends in global insurance in recent years are premium growth in emerging markets and the rising importance of technology across the supply chain. The latter has come to be referred to as insurtech, a potentially disruptive trend that heralds both threats to and opportunities for incumbents and newcomers alike. While technological solutions are being applied along the insurance supply chain in advanced markets, their focus in emerging markets has primarily been on driving premium growth. Many lower- and some middle-income countries have managed to largely skip the mass rollout of fixed-line telephony, as the prevalence…

Overview

Digital disruption: Insurance technology (insurtech) taps premium growth potential in emerging markets
OBG
plus

Two of the biggest trends in global insurance in recent years are premium growth in emerging markets and the rising importance of technology across the supply chain. The latter has come to be referred to as insurtech, a potentially disruptive trend that heralds both threats to and opportunities for incumbents and newcomers alike. While technological solutions are being applied along the insurance supply chain in advanced markets, their focus in emerging markets has primarily been on driving premium growth. Many lower- and some middle-income countries have managed to largely skip the mass rollout of fixed-line telephony, as the prevalence…