CBB issues rules for insurance aggregators.
MANAMA: Rules on insurance aggregators have been finalised in Bahrain paving the way for 'insurtech' businesses.
The Central Bank of Bahrain (CBB) yesterday said it has become one of few central banks to have introduced rules relating to insurance aggregators to further enhance the position of Bahrain as a leading fintech hub in the Mena region.
CBB executive director of financial institutions supervision Abdul Rahman Al Baker said, "The introduction of insurance aggregator rules is a first step for the CBB towards 'insurtech', a technology led transformation of the insurance sector which is rapidly gathering momentum globally."
Insurance aggregators are intermediaries with an insurance broker's licence who operate an online platform, whether hosted on an Internet website or available as a smart device application (app) which provides price comparisons and facilitates the purchase of insurance policies from several insurance licensees.
With the introduction of insurance aggregators, a customer is able to find and choose insurance quotes from several insurance companies under a single electronic platform or mobile device application, instead of obtaining quotes individually, and purchase an insurance policy online from an insurance company.
Draft rules on insurance aggregators were issued by the CBB in April, inviting feedback from the industry.
Two months back, UAE-based Souqalmal.com became the first company to get an e-broker licence in Bahrain.
Souqalmal.com had said it would soon launch its insurance comparison website in the country, in a bid to simplify the financial fine-print for the average consumer in Bahrain and help residents make informed decisions about insurance.
According to Bahrain FinTech Bay's Insurance Digitalisation Report 2019, there's a rising demand for digital insurance services in Bahrain, which can drastically improve customer experience, service delivery and lower transaction processing times.
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