Kuwait - Regulator tightens control over insurance sector
Wednesday, 04 24 2019, Category: Insurance and Reinsurance, Country: Kuwait
In an attempt to restructure the insurance sector, where some units are involved in irregularities and accusations, the Ministry of Commerce and Industry (MoCI) has tightened control over this sector by issuing new instructions, reports Al-Rai daily.
In this regard, the daily has learned that the Undersecretary of the Ministry, Abdullah Al-Afasi, has issued a circular stipulating that no General Assembly shall be held for any insurance company until after the Insurance Department has been informed of the dates and agenda so that any observations or objections can be taken note of. The circular pointed out that the Insurance Department should be notified of any change or emergency modification regarding the form of the company or its board of directors or capital. The management of the concerned companies must inform the Insurance Department of these changes or amendments immediately and submit related documents without any delay.
On the other hand, Al-Afasi has issued another circular not to approve requests to amend or change the contracts of the insurance companies unless after careful examination and after seeking the opinion of the Insurance Department provided supporting documents are submitted to the ministry. This circular comes within the framework of the insurance companies' governance, and the positive implications for monitoring and controlling and guaranteeing the stability of the insurance market to protect the rights of insurance policy holders.
Source: MENA FN