The Insurance Regulatory Unit announced the referral of three insurance brokerage companies to the public prosecution to enable legal proceedings on suspected crimes attributed to them under Law No. 125 of 2019 regulating insurance and its executive bylaws with subsequent amendments. The unit framed the step as part of its ongoing supervisory and legal measures aimed at protecting the rights of policyholders, beneficiaries and all sector participants. It instructed the brokerage firms to correct the violations to avoid escalation including potential suspension proceedings under the established legal framework.
In tandem the regulator directed warnings to four insurance companies for breaches of the same statute its implementing regulations and associated decisions according to the October 14 statement. The companies must rectify the cited infractions to avert enforcement of operational halts the announcement specified. The Insurance Regulatory Unit underscored that all supervised entities must adhere strictly to the law regulations and decisions to maintain market order.
According to the unit’s latest annual report Kuwait’s insurance market recorded gross written premiums of 543 million dinars in the fiscal year ended March 2026 reflecting an 11.8 percent contraction from the prior period. The IRU attributed the decline primarily to the cancellation of the government Afia health insurance scheme which caused health premiums to drop more than 40 percent to 165 million dinars even though the total sum insured in that segment increased by 31 percent. Motor third-party liability premiums rose 26 percent to 53 million dinars while comprehensive motor business advanced 6 percent to 102 million dinars.
Alpen Capital has forecasted that the Kuwaiti insurance market will expand at an average annual rate of 6.4 percent between 2023 and 2028 reaching 2.4 billion dollars by the end of the period. Population growth new infrastructure projects compulsory health insurance for expatriates and sector digitalization will drive the projected premiums the consultancy assessment found. The regulatory enforcement actions coincide with this growth trajectory as the unit seeks to reinforce compliance across an industry that also saw listed insurers post 99 million dinars in net profit for 2025 according to Atlas Magazine data.
Legal affairs director at the unit Talal Al-Muharib oversaw communication of the referrals and warnings the announcement indicated. The Insurance Regulatory Unit stated it will continue exercising its oversight mandate and applying necessary legal measures against any further infractions. Such steps aim to safeguard stakeholder interests and elevate overall compliance and discipline levels in the Kuwaiti insurance market.
