5 days ago
Oman ranks among top nations for insurance core compliance
Muscat: In a step that reflects the Sultanate of Oman's commitment to enhancing governance and regulation standards in the insurance sector, the International Association of Insurance Supervisors (IAIS) recently published a detailed assessment of the Sultanate's level of compliance with Insurance Core Principles (ICPs), following the Financial Services Authority's undergoing a comprehensive assessment in the Member Assessment Program (MAP) in early 2024. Thus, the Sultanate of Oman is the fifth country in the world to undergo this assessment after Guernsey, Morocco, Mexico and Albania. The program aims to assess the extent of regulators compliance with ICPs, which include 24 standards that constitute the frame of reference for effective supervision of the insurance sector.
The MAP program aims to review the supervisory and regulatory policies and practices adopted in the insurance sector and measure their compatibility with ICPs issued by the IAIS. The assessment continued for more than a year during which it covered multiple stages starting from preparation and training, reviewing laws and legislation, field visit carried out in September 2024 and lasted for two weeks during which the assessment team, which comprised representatives of international regulators and independent experts, met with FSA and key partners in the sector, including insurance companies, brokers, auditors and government officials in addition to the Oman Insurance Association.
The international assessment conducted by the IAIS concluded that the Sultanate of Oman has an advanced regulatory and supervisory framework in the insurance sector. The results of the report showed a good level of compliance with the Insurance Core Principles (ICPs), with the majority of the principles rated as 'compliant' or 'largely compliant.
The report, which was prepared after a field visit and approved in June 2025, noted the remarkable progress achieved by the Sultanate of Oman by introducing risk-based requirements and enhancing technical supervisions, including actuarial reviews. The report also included recommendations for developing certain regulatory aspects, which constitute the basis for improving performance and protecting the rights of beneficiaries in the insurance market
It is worth noting that ICPs represent a standard framework developed by the IAIS with the aim of guiding supervisors around the world to apply best practices in the regulation and supervision of the insurance sector. These standards cover various aspects related to supervision such as governance, risk management, beneficiary protection and financial stability and is considered an essential reference for assessing the effectiveness of regulatory frameworks and encouraging legislative harmony between countries.
