IRU launches landmark reforms to protect policyholders
. . . overhauls sector with modern standards and stronger consumer protections; new mandatory rules to curb fraud and boost market confidence with QR codes, transparency, and standardized premiums in insurance”
The Insurance Regulatory Unit (IRU) Sunday issued Resolution No. (19) of 2025, introducing new rules for mandatory insurance policies in Kuwait — excluding the civil liability insurance policy for traffic accidents (mandatory vehicle insurance).
The move aims to strengthen transparency, protect policyholders’ rights, and develop the local insurance market.
In a press statement, Mohammed Al-Otaibi, Head of the IRU, said the resolution imposes several new obligations on insurance companies. Among the most important is the inclusion of a declaration and pledge clause in policy documents, requiring the insured to confirm awareness of all terms, conditions, exclusions, and coverage limits, reports Al-Rai daily.
The decision also requires every policy to feature a QR code containing all relevant information, enabling easier tracking of documents, preventing fraud, and improving awareness of rights and obligations.
It also mandates companies to clearly outline policy cancellation cases, methods for calculating refunds, and the basis for premium calculation, ensuring consistency and fairness across the sector.
Al-Otaibi explained that these reforms will eliminate discrepancies in policy pricing, as the resolution provides a standardized framework for calculating premiums. This will ensure a transparent relationship between insurers and customers.
The QR code system will officially be implemented 180 days after publication in the Official Gazette, giving companies time to upgrade their systems.
However, from the date of publication, all companies must begin following unified principles and standards when issuing mandatory insurance documents.
The resolution’s appendix also sets out technical controls for developing electronic systems, information security standards, and awareness measures to protect beneficiaries. These measures aim to guarantee the safe issuance of electronic policies while minimizing the risk of forgery or fraud.
Al-Otaibi emphasized that the decision represents a major step forward in modernizing Kuwait’s insurance infrastructure, aligning it with international best practices. He added that the reform not only protects policyholders but also supports the national economy and strengthens social stability.
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