Given the supervisory role of the Insurance Regulatory Unit (IRU) over the insurance companies operating in the State of Kuwait with respect to compliance with provisions of the Law No. 125 of 2019 concerning the insurance regulation and its Executive Regulations or to any other matters, including but are not limited to, the insurance companies’ compliance with the IFRS 17 application in accordance with the timeframes set by IRU, the IRU, in this sense, mandates engaging an independent auditor to issue assurance reports on compliance of the IRU-supervised companies and entities with the issued resolutions, circulars, and instructions.
It is worth mentioning that Baker Tilly has two independent auditors registered with the IRU, namely:
- Mr. Mohamed Hamed Al-Sultan – License No. 100 A.
- Mr. Ali Mohamed Al-Hamad – License No. 111 A.
Thus, Baker Tilly is a professional firm providing assurance reports to the IRU.
What are the independent auditor’s reports submitted to the IRU?
Assurance reports are among the reports independent auditor issues in accordance with the International Standards on Auditing (ISA). Yet, an assurance report varies from one to another depending on the scope of work required by the regulatory authorities that ultimately enable these authorities to identify the status of the subject matter covered in the insurance companies’ scope of work.
A practical example of the IRU assurance report requirement:
The IRU issued circular No. 2 of 2023 regarding the IFRS 17 implementation, which requires insurance companies to abide by and fulfill the requirements of the following phases:
Phase 2: Setting implementation plan for Gap Analysis Report considering the minimum requirements specified in Appendixes 1 and 2.
Phase 3:
- First Dry Run of financial statements for the second quarter by 14 August 2023
- Second Dry Run of financial statements for the third quarter by 14 November 2023
The circular further requires the concerned companies to engage an independent auditor to issue an assurance report on their compliance with the IFRS requirements set forth therein.
What are the conditions for engaging an independent auditor to issue an assurance report to the IRU?
- The independent auditor shall be licensed by the Ministry of Commerce and Industry (MOCI) in the State of Kuwait.
- The independent auditor shall be registered with the IRU in the State of Kuwait.
What is the added value to insurance companies from issuing assurance reports to the IRU?
- Ensure compliance with the IRU’s legal and regulatory requirements.
- Increase the stakeholders’ trust in the company and enhance its reputation.
What are the services provided by Baker Tilly Kuwait?
Issuing assurance reports to the IRU.