Oman: Regulator eases insurers' overseas investment limit
Source: Middle East Insurance Review | Oct 2020
Oman’s Capital Market Authority (CMA) has approved a revised regulation for insurance companies that will allow them to invest up to 30% of their investment portfolio abroad.
CMA vice president for the insurance sector Ahmed bin Ali Al-Mamari told WAF News that the new regulation has been approved by CMA’s board of directors. Currently, approval is being sought from other relevant authorities.
The new investment cap seeks to achieve a balance in directing insurance companies to invest at least 70% of their funds in Oman, Mr Al-Mamari said. The changes will allow insurance companies to invest in shariah-compliant investment vehicles locally and abroad.
The revised regulation sets the quota for each investment category in the insurance sector’s investment portfolio “in a manner that ensures the diversification and distribution of assets adequately so that the companies can respond efficiently to changes in the financial markets”, Mr Al-Mamari told WAF.
It mandates insurance companies to furnish an investment policy approved by their boards annually. The policy must cover the company’s plans to manage risks, investment system and risk appetite. Each insurance company will produce analysis and evaluation of the risks and possible results for each and the correlation between internal risks and external factors. The companies will have to show their abilities to meet their obligations, and that the adequacy of their capital will not be affected by these risks. M