The expansion of Kuwait’s insurance market

Kuwait

Anwar Jawad Bukhamseen, chairman of Warba Insurance and Reinsurance, talks to The Energy Year about the state of the insurance market in Kuwait and its competitiveness. Warba Insurance and Reinsurance is a Kuwaiti company providing insurance services to individuals and companies.

What is your assessment of the Kuwaiti insurance market?
The Kuwaiti insurance sector was among the most important ones in the region in the 50s. However, today it has yet to develop. The Kuwait Insurance Federation (KIF), of which I am the vice-chairman, is doing a terrific job for the growth of this sector and the national economy at large. Furthermore, the Insurance Regulatory Unit (IRU) was established in 2019 under the Ministry of Commerce and Industry with a mandate to regulate insurance activity and ensure that companies like ours comply with the new insurance law. In particular, the IRU is making substantial efforts to regulate compulsory insurance requirements, putting pressure on the big insurance companies in Kuwait.

How competitive is the insurance market in Kuwait?
The IRU’s regulations are helping the Kuwaiti insurance market expand and become more competitive. These new regulations are making the market more attractive to international insurance companies, and Kuwait’s insurance sector is set to become one of the largest in the GCC area. Warba’s strength is our commitment to creating our own market share. Double-digit growth is expected, with the health sector leading the way as the government encourages mitigating the health burden from the state to the private sector.
In 2022, Warba grew by almost 19% on the top line when compared to the same period in 2021, and recently, we raised our authorised capital to KWD 25 million [USD 81.5 million]. As a major insurer, we are at the forefront of future governmental tenders, which will be announced in the coming months. We are investing in our human capital, bringing expertise from all over the world and forming worldwide alliances to serve our clients and build our market share rather than competing for it.

What is Warba’s contribution to the Kuwait energy sector?
Since Warba’s establishment in 1976, we have played major roles in the insurance industry, being actively involved in its different lines of insurance businesses in both the governmental and the private sectors of Kuwait’s economy, including the oil industry.
With the growth of Kuwait’s energy sector over the years, we ensure that Warba also grows in this sector year after year. Significant developments are occurring downstream and upstream, especially in the petrochemicals sector. In order to provide financial stability for their investments and to ensure the growth of the industry, we help identify and provide awareness of the associated risks with the assistance of our international alliances so we can support the sector’s development.

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