Oman: New regulation proposed for brokers
Source: Middle East Insurance Review | May 2015
The Capital Market Authority (CMA) has unveiled a draft regulation for insurance brokerage firms to enhance their role in the market. When finalised, the new regulation will become an executive rule before the end of the year.
Insurance brokers in Oman have been given two weeks to provide feedback on the draft regulation.
Highlights of the new regulation include the management of credit facilities between the client and the brokerage firm, minimum capital requirements and the separation of direct brokerage businesses from reinsurance businesses, reported Times of Oman citing a senior CMA official.
Mr Ahmed Ali Al Mamari, Director General, Directorate of Insurance Supervision at the CMA, told the newspaper that CMA seeks to support insurance brokerage firms, which are vital in providing efficient services.
“Also, the new regulation is focussing on protecting the interests of policyholders, and on providing them with efficient and safe services,” he said.
Oman has 36 insurance brokerage firms, 22 insurance companies, including two takaful operators and one reinsurance firm. Total premiums increased by 10% to OMR400.4 million (US$1.04 billion) in 2014.
OMR1 = US$2.60