Law No. 125 of 2019 on Regulation of Insurance and its Executive Regulations sets forth that any group of investors intending to incorporate an insurance company shall prepare a feasibility study indicating the extent of feasibility of establishing a new insurance company considering the size of insurance market in the State of Kuwait, the existing companies engaged in insurance and reinsurance business. The feasibility study should highlight the added value of the company to be incorporated to carry on the business.
The Executive Regulations outline the cases requiring the preparation of a feasibility study as follows:
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Application for license to carry on any of the insurance or reinsurance lines of business
Pursuant to the provisions of Article 70 of the Executive Regulations of Insurance Regulation Law
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Application for opening a branch of insurance company in Kuwait or abroad
Pursuant to the provisions of Article 72 of the Executive Regulations of Insurance Regulation Law
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Transfer of insurance policies
Pursuant to the provisions of Article 95 of the Executive Regulations of Insurance Regulation Law
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Filing acquisition offer or entering into arrangements or agreements resulting in effective control over an entity regulated by the IRU
Pursuant to the provisions of Article 104 of the Executive Regulations of Insurance Regulation Law
Given the complexity involved in preparing feasibility studies, Baker Tilly stands out as a trusted consulting firm with credentials in developing feasibility studies tailored to the insurance industry.
Moreover, Baker Tilly regularly updates databases and has a team of specialized professionals to provide this service.
What is the added value to insurers and reinsurers from Feasibility Study Services?
- Ensure regulatory compliance with the law, regulations, resolutions, rules, and instructions issued by the Insurance Regulatory Unit;
- Assist insurance and reinsurance companies in understanding the level of demand for the product or service and the extent of the feasibility of the project as a whole;
- Assess available resources and the marketability of the product or service.
- Identify the appropriate timing for launching the product or service.
What are the services offered by Baker Tilly Kuwait?
Preparing feasibility studies for insurance and reinsurance companies