Oman's Financial Services Authority (FSA) has issued warnings to two insurers for failing to comply with the rules covering the retention of net health insurance premiums within the Sultanate.
In a statement posted in March on its website, the FSA said that it had issued administrative decisions warning Muscat Insurance and Arabian Falcon Insurance for failing to comply with the 40% retention ratio of the net health insurance premiums.
The FSA said that the action emphasised its keenness to enhance the financial sustainability of the insurance sector to stabilise the market and safeguard the rights of consumers. “Compliance is a requirement that aims to support the local economy and enhance investments inside the Sultanate of Oman through providing liquidity to develop the health insurance sector and continuing its growth as well as retaining part of the premiums inside the Sultanate to reduce reliance on external markets and enhancing financial stability to ensure rendering high-quality insurance services.”
The director-general of the FSA’s Market Regulatory & Development Unit, Ahmed Bin Salim Al Harrasi, told the news website Atheer, that retention leverages local expertise in underwriting and risk management, which enhances the presence of national cadres specialising in this type of insurance, rather than relying entirely on external reinsurers.
In October 2019, the Capital Market Authority (renamed FSA in 2024) issued the Health Insurance Rules in respect of the Unified Health Insurance Policy, setting out the obligations of the various stakeholders in the health insurance branch. Among the requirements, health insurers are required to retain a minimum of 40% of the net health insurance premiums within Oman.