May 27, 2024

Kuwait’s client-driven Insurance sector is a lifesaver for the citizens

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Kuwait is widely regarded for establishing one of the oldest insurance companies in the GCC (Gulf Cooperation Council) region, such as the Kuwait Insurance Company. Analysis indicates, the scale of the insurance sector of Kuwait reached a market value of USD 2.95 billion in the year 2021. As per the reports published by the Kuwait Insurance Federation (KIF), the market grew by 4.3% in the year 2021. Direct premiums had a decent growth from KWD 527 million as of 2020 to KWD 549.7 as recorded in 2021.

The life insurance segment took the lead in the sector in 2020, however in the year 2021, some reports suggest the health insurance segment dominated the market generating a revenue of KWD 275 million, which largely contributed to the total premium income by 50%. Comprehensive motor insurance claimed the second position with premiums generating KWD 75.4 million followed by third-party classes of business with KWD 18.6 million. As per the reports, the magnitude of claims settled by the insurance companies of Kuwait touched KWD 383.9 million in the year 2021 with a growth of 15% since 2020.

Kuwait is again one of the oldest insurance sectors in the Gulf Cooperation Council to introduce Takaful insurance products where the excessive profits raked are distributed among the policyholders. Takaful insurance is booming in the sector, although the operating costs are relatively higher for companies as it involves additional employees to handle the complex risk-sharing arrangements that aid a majority of the transactions.

During the rough year of 2020, Shlonik, a telemedicine software was launched in Kuwait to hamper the spread of the virus by constantly monitoring the patients while giving them access to medical care all day and night.

As reported in March 2021, some of the top players in the insurance sector teamed up and launched a new Electronic Medical Record (EMR) system in Kuwait. The data aids customers to deal with interoperability, critical scalability and more.

As announced in February 2022, the Insurance regulatory unit of Kuwait made a key decision to provide insurance to nongraduate expats for ages above 60 years at KD 500. With coverage of total treatment costs of KD 10,000 annually, KD 1500 for outpatient clinic treatment, and KD 500 for ordinary dental procedures, the policy covers pretty much everything for the old folks.

In 1960, Kuwait-based Kuwait Insurance Company became the first insurance company to be established in the country. With over 200 employees and 11 branches, the insurance company offers a wide array of Life insurance and General insurance products to its millions of customers in Kuwait. Additionally, the company provides modern insurance products that fulfill Sharia laws. Kuwait Insurance Company possesses technical reserves of an estimated KD 76 million and total assets of an estimated KD 205 million.

As reported in March 2022, Kuwait Insurance company in collaboration with Kuwait-based Insecure & Secure, launched a meticulously designed travel insurance product called Globe travel. The product covers travelers from diseases, medical emergencies, travel risks, and medical expenses for accidents & illness and comes with coverage for a duration of 3 years. In addition, the insurance also covers the costs of canceled flight trips, quarantine accommodation for 10 days, flight delay costs for at least 4 hours, baggage delay costs for at least 12 hours, and costs for evacuation. Over and above, injuries ranging from summer and winter sports are also covered in the insurance and lastly it is priced decently. Moreover, KIC also provides round-the-clock customer service, overall making it a handy insurance product for flight travelers.

Kuwait Insurance Company Awards Logo

In recognition of its outstanding Insurance services to the people of Kuwait, Kuwait Insurance Company has been awarded ‘Most Financially Sound Insurance Company Kuwait 2022’ by International Business Magazine, a Dubai-based global publishing house. The award has been conferred based on its flexible insurance products and the company’s innovative policies commended by millions of consumers in Kuwait.

An upside jump in the huge capital investments made by the Government of Kuwait has fueled revenue to the Insurance sector as seen in the last few years, in addition to the mega project activities, hike in the international oil prices, and non-oil businesses in the country. Analysis suggests that a significant percentage of earnings to Kuwait’s insurance sector comes from business underwriting, mostly from construction activities.

Kuwait is speculated to be the fastest-growing insurance sector in the Gulf Cooperation Council in the next four years, growing at a Compound Annual Growth Rate (CAGR) of 5.3% to touch USD 1.6 billion as projected in the forecast period of 2021 – 2026. The demands will continue to rise for insurance in property, vehicles, health, and more while tax incentives on insurance products, growing life expectancy, and more will propel the growth. There has also been an increase in digital mediums to quickly and easily avail insurance policies in the country.

Blog by Harish Rajulu

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