Oman: Regulator blocks unauthorised motor insurance premium increases
Source: Middle East Insurance Review | Oct 2025
The Financial Services Authority (FSA), the regulator of the insurance sector in Oman, has confirmed that it had not granted approval to any insurance company to increase mandatory motor third-party liability (MTPL) insurance premiums, according to a post on the regulator’s X account.
The FSA first issued a statement on 30 July, following reports circulating on social media about insurance companies’ controversial decision to hike the minimum MTP insurance price with effect from 1 August.
Observing that MTPL insurance premium increases had been effected by some insurers, the FSA reiterated on 3 August that it had not approved any premium hikes.
The Authority said that it had instituted legal action against the violating companiesIt had contacted the errant companies and demanded that they immediately halt any unauthorised price increases and comply with approved tariffs.
Consequently, at least one insurer has declared that they were reversing the recent price increases, and they would comply with directives issued by the FSA.
The Authority continues to closely monitor vehicle insurance rates to maintain their stability within safe and appropriate limits.
Statistics for 2024 on the FSA’s website indicate that overall, including comprehensive vehicle insurance and third-party vehicle insurance, the average loss ratio in the motor branch was 80.5%. Some insurers reported a loss ratio of over 100%. One major reason for the high claim ratios in 2024 is heavy floods from extreme rainfall in April that year. M