Foreign insurers operating in Kuwait are subject to a new condition that requires a minimum rating standard for their parent companies, according to a new resolution the regulator has issued.
Foreign insurance companies operating in Kuwait are required to submit documents indicating that the parent company has obtained a credit rating from one of the approved international rating agencies, namely AM Best, Standard & Poor's, Moody's Investors Service, Fitch Ratings; according to Article One of the Resolution No. 3 of 2025 which the Insurance Regulatory Unit (IRU) issued recently (on 23 January).
According to Article Two of the Resolution, the credit rating must be in accordance with the minimum standard of the following or its equivalent:
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The Rating Agency
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Minimum rating standard
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AM Best
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B+
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Standard & Poor’s
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BBB
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Moody’s Investors Services
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BAA
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Fitch Ratings
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BBB
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Branches of foreign insurance companies are obligated to ensure that the parent company maintains its rating during the period of its license, and to submit a certified certificate accompanied by an Arabic translation annually stating that the company is rated by one of the approved rating agencies.
The resolution added that that if the company submits a rating certificate issued by international rating agencies equivalent to one of the rating agencies approved by the unit, a certified certificate must be submitted and translated into Arabic for consideration.
It also notes that if the insurer’s rating falls below the minimum limit mentioned in Article Two of the Resolution, the IRU must be notified immediately.
The Resolution states that insurance companies must commit to submitting credit rating reports and any amendments thereto to the IRU within 90 days from the date of their issuance.
The Unit called on the competent authorities to implement these decisions and work with them, each in their respective capacity, and they shall be effective from the date of their issuance and published in the Official Gazette.