Outsourcing Policy

This policy aims to regulate the company's mechanism for engaging external parties to carry out certain activities related to Takaful insurance operations, ensuring:

• Enhanced operational efficiency
• Compliance with regulatory requirements
• Maintaining the confidentiality of customer data
• Managing risks associated with outsourcing
• Adherence to governance rules, Insurance Law No. 125 of 2019 and its executive regulations, and the required circulars and decisions issued by the Insurance Regulatory Unit

This policy applies to all departments within the company when engaging any external party to carry out activities related to insurance, investment, or support services.

External parties are defined as: any third party contracted to perform services or tasks for the benefit of the company, such as:

• External auditors
• Claims management companies
• Information technology service providers
• Financial, legal, and insurance consultants
• Credit rating agencies

The company is committed, when contracting with any external party, to the following:

• Ensuring the competence and experience of the external party
• A clear justification for outsourcing this service
• No conflict of interest
• Compliance with the laws and regulations issued by the regulatory authorities in the State of Kuwait
• Maintaining the confidentiality of information and data

• Technical expertise and specialization
• Professional reputation
• Ability to comply with regulatory and legal requirements
• Financial capacity
• Possession of the necessary licenses consistent with the nature of the contract

Contracting procedures include:

• Obtaining the necessary internal and external approvals
• Presenting the contract to the Board of Directors

Signing a formal contract that specifies:

1. Scope of work
2. Contract duration
3. Obligations and responsibilities
4. Confidentiality terms
5. Contract termination mechanism
6. Contract value

The company undertakes the following:

• Periodically monitoring the performance of the contracted external party according to the terms of the signed contract
• Evaluating the provided service quality
• Ensuring compliance with contract terms
• Taking corrective actions when necessary
• Linking the completion of required legal, financial, and insurance services to payment

The company assesses the risks associated with using external parties:

• Operational risks
• Compliance risks
• Reputational risks
• Information security risks
• Compliance with governance rules, Insurance Law No. 125 of 2019 and its executive regulations, and circulars and decisions issued by the Insurance Regulatory Unit

All external parties are obligated to maintain the confidentiality of company and client data and not use or share with any unauthorized purposes, in accordance with applicable laws.

This policy is reviewed periodically, or upon the issuance of any regulatory updates, to ensure its alignment with best practices and regulatory requirements.

This policy has been approved by the company's Board of Directors and shall be implemented as at its approval date.