MoCI’s insurance panel studying a proposal to grant licenses for 2yrs

Bid to better facilitate work mechanism

KUWAIT CITY, Feb 10: The committee specialized in the insurance sector at the Ministry of Commerce and Industry is currently studying the proposal to grant companies licenses to practice the profession for two years instead of one, as is currently done, pointing out that the insurance companies had on more than one occasion called on the Ministry of Commerce and Industry to grant a two-year licence to better facilitate the work mechanism, sources familiar with the issue told Al-Anba daily.

“The local insurance market still needs a sound regulatory vision, especially in light of the absence of an independent and specialized body that is responsible for enacting legislation and laws that serve the insurance market,” said Salah Al-Lengawi, general manager of NASS Insurance Claims Management.

He said, the companies work in the market and protect their interests, pointing out that the workers in the insurance market face many problems that limit the growth of the sector which is expected to see the withdrawal of a number of insurance companies from the market in 2019 because of the financial burdens and the growing size of compensation in the face of weak returns.

Al-Lengawi pointed out that the major insurance companies were able to acquire the market due to the large financial solvency and the volume of their business in the sector.

“Therefore, I think that these small companies will be negatively affected in the coming period,” he said and pointed out that the insurance sector is saturated and there is no room for more companies to enter the market.