The Competition Protection Authority stated insurance in Kuwait is still the lowest in the Gulf, but expected to increase with the application of new regulations, noting that this depends on the global economic conditions and government investment in infrastructure initiatives and improving the performance lines of the compulsory insurance system.
In a study titled ‘The Insurance System in Kuwait: The Competition Protection Authority’s Viewpoint’, the authority pointed to Kuwait’s modernization of insurance regulations, in accordance with Law No. 125 of 2019, which is expected to bring about several changes in the field of insurance business, and said the role of the authority is to conduct a preliminary assessment of the conditions of competition in the insurance market and to confirm the application of the new regulations proposed by the Insurance Regulatory Unit.
The study showed the structure of the Kuwaiti insurance market is similar to the rest of the Gulf countries, as the top five companies represent more than 80% of the total insurance premiums.
The study stated the average level of efficiency in Kuwait is similar to the average efficiency of the rest of the Gulf countries, while companies need to expand the lines of insurance work and improve the level of the economy in terms of underwriting and distributing insurance products.
The study pointed out that the Kuwaiti insurance market is relatively smaller compared to the Gulf Cooperation Council countries and is more concentrated, indicating that despite the presence of many insurance companies (39 licensed companies), the largest 5 insurance companies have issued more than 80 percent of the total written insurance premiums, while the rest of the companies compete for a small part of the market, while the insurance density is relatively low, at 1.3 percent, but is still viable.