The Kuwaiti Insurance Regulatory Unit (IRU) has issued a resolution to prohibit cash transactions in the insurance sector.
Under this, insurance companies and licensed providers must carry out all payments and collections exclusively through banking channels or electronic systems approved by the Central Bank of Kuwait.
An exception is for individual insurance policies issued at border crossings, particularly those linked to compulsory vehicle cover, recognising the practical challenges associated with such transactions.
The move forms part of Kuwait’s broader push towards digitalisation, reducing reliance on cash while strengthening compliance, traceability and financial governance across the insurance industry. It is also in line with regulations aimed at combatting financial crime, including anti-money laundering and counter-terrorism financing.