Kuwait: Banks promote life insurance to borrowers

Source: Middle East Insurance Review | Oct 2024

Banks and local financing institutions are promoting a life insurance product among loan borrowers, under the direction of the Central Bank of Kuwait. Under the policy, the insurer pays outstanding loan balance on the customer’s death, covering only death risk, reported Al-Rai.

A regulatory directive stated that the life insurance coverage is optional for the customer who shares half the cost if they opt in with premiums capped at 2% of the loan. The insured amount decreases with as the loan balance is paid down.

Some banks bear the entire insurance premium amount to woo customers even if the customer does not opt for the insurance. M

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