IRU introduces groundbreaking changes to safeguard policyholders' interests
The Insurance Regulatory Unit (IRU) in Kuwait has announced a significant overhaul of the mandatory insurance sector with the introduction of Resolution No. 19 of 2025. The new rules aim to strengthen transparency, protect policyholders' rights, and develop the local insurance market.
Under the new regulations, every mandatory insurance policy will now include a declaration and pledge clause confirming that the insured or policy subscriber understands the key terms, conditions, exceptions, and coverage limits of the policy before acceptance. This measure is designed to ensure full awareness and transparency regarding the insurance contract.
A key aspect of the reform is the implementation of a quick response (QR) code system. This will be incorporated on all mandatory insurance policy documents, containing related policy data. The QR code system is intended to prevent forgery, ensure authenticity, and improve the security of electronic policy issuance. Insurance companies have been given 180 days from the official publication of this resolution to implement the QR code system, allowing time to upgrade electronic platforms accordingly.
The new rules also mandate companies to adhere to unified principles and technical controls when issuing mandatory policies. These controls cover electronic system development, information security, data protection, and beneficiary awareness. The annex of the resolution defines strict technical standards to ensure secure, fraud-resistant issuance and usage of electronic policies.
The reforms also include clear guidelines on policy cancellation, refund mechanisms, and a standardized premium calculation method to eliminate pricing discrepancies and boost transparency between insurers and insureds.
The primary goals of these regulations are to protect policyholders’ rights, prevent fraud, enhance efficiency in the insurance sector, support the national economy, and strengthen social stability in Kuwait. The changes reflect a significant modernization and digital upgrade of Kuwait’s insurance sector, aligning it with international best practices under the supervision of the IRU and its head, Mohammed Al-Otaibi.
It is important to note that the new rules do not apply to the civil liability insurance policy for traffic accidents, which remains mandatory.
[1] Al-Rai, (2025), Kuwait Introduces New Insurance Rules to Boost Transparency and Market Development. [Online]. Available: https://www.alraimedia.com/business/kuwait-introduces-new-insurance-rules-to-boost-transparency-and-market-development
[2] Arab Times, (2025), Kuwait's Insurance Sector Undergoes Digital Upgrade with New Rules. [Online]. Available: https://www.arabtimesonline.com/business/kuwaits-insurance-sector-undergoes-digital-upgrade-with-new-rules/
[3] Kuwait Times, (2025), IRU Issues New Insurance Rules for Transparency and Market Development. [Online]. Available: https://www.kuwaittimes.net/iru-issues-new-insurance-rules-for-transparency-and-market-development/
[4] Zawya, (2025), Kuwait's Insurance Regulatory Unit Introduces New Rules for Transparency and Market Development. [Online]. Available: https://www.zawya.com/mena/en/business/story/Kuwait_s_Insurance_Regulatory_Unit_Introduces_New_Rules_for_Transparency_and_Market_Development-ZAWYA20250101041000/
[5] Gulf Business, (2025), Kuwait's Insurance Sector Gets a Digital Makeover with New Rules. [Online]. Available: https://gulfbusiness.com/kuwaits-insurance-sector-gets-a-digital-makeover-with-new-rules/
- To align with the new regulations, insurance companies in Kuwait will be incorporating a quick response (QR) code system into their mandatory insurance policy documents, promoting authenticity, security, and transparency in electronic policy issuance.
- A notable aspect of the reforms is the requirement for every mandatory insurance policy to include a declaration and pledge clause, ensuring policyholders fully understand their coverage before acceptance, in line with the goals of protecting their rights and increasing transparency.
