Kuwait - Regulator might suspend up to 12 insurers
Thursday, 04 18 2019, Category: Insurance and Reinsurance, Country: Kuwait
The Ministry of Commerce and Industry is preparing to expand the number of insurance companies threatened with suspension to 12, reports Al-Rai daily. According to informed sources, the ministry intends to stop activities of three erring companies including one suspected of money laundering.
They said reasons behind suspension of activities and withdrawing licenses of the 12 entities vary, but the most notable is failure to provide funds to stay in the budget for 2018. Sources disclosed the ministry “is studying the possibility of toughening penalty for erring insurance companies, as it is expected that the withdrawal of the license until the penalized companies amend the current situation is not limited to a period of three months.”
They clarified that linking the return of the activity with settlement of the situation will encourage violating companies to show interest in preserving the rights of customers and durability of the market at the same time. They pointed out that some erring companies did not submit their annual financial statements for 2018 on time, while some did not pay supervision and monitoring fees of insurance companies – ranging from half dinar to one dinar for each document.
This is in addition to not completing the payment of half million dinars deposit specified in the ministerial decision. “The ministry is fully cooperating with insurance companies, but it only applies to serious companies that are already keen on rectifying their situation. They have no plans to declare bankruptcy by claiming default to circumvent customer rights and State fees,” sources added.
Source: Arab Times