The insurance regulatory unit of Kuwait has taken action to stop issuing paper car insurance policies and has announced that all policies must be exclusively issued through the electronic Bima system. This decision is aimed at enhancing the digital transformation process and improving oversight of the insurance industry.
Prohibition of Policies Outside the System
The insurance regulatory unit has also warned that any policy issued outside the Bima system will not be recognized at all. This decision is intended to reduce insurance fraud and prevent price manipulation.
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Issuance of Policies Through Authorized Representatives
Insurance companies may allow their contracted representatives to issue policies through sub-accounts on this platform, provided they comply with regulatory requirements. The regulatory unit has clarified that customers can still request policies directly from insurance companies or representatives, but all payments must be made electronically, and cash will no longer be accepted.
During the trial period, insurance companies are required to hold training workshops for their contracted representatives and must maintain records of participants. Hamad Tifouni, the acting director of the information systems department, stated that the Bima system provides a centralized platform for car insurance policies that facilitates improved data accuracy, statistical reliability, and regulatory oversight while supporting more transparent and efficient operations.
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