Kuwait – Price wars harm insurance sector
Monday, 04 23 2018, Category: Insurance and Reinsurance, Country: Kuwait
The insurance sector faces more problems and challenges as the government did not take care sufficiently about the sector. The insurance law was not modified since it was issued in the 1960s. Therefore, wrong practices are common in the Kuwaiti market according to Mr. Mohammad Sulaiman Al Otaibi of Ilaf Takaful. He said that companies are following wrong practices such as “price wars” practiced by small companies to increase revenues at the expense of quality.
As a consequence he said in an interview with “Al Seyassah” that the fourth and tenth articles of the competition protection law should be applied in order to prevent harmful competition and monopolistic practices in order to limit chaos in the insurance sector noting that the regulator i.e. the Ministry of commerce and industry cannot intervene as the insurance law does not grant it enough prerogatives.