Motor Insurance Amendments in Oman: How They Enhance Financial Inclusion and What It Means for Your Business
MUSCAT: Recent amendments to regulations in the motor insurance sector are expected to drive significant improvements benefiting all stakeholders and promote economic growth in Oman. These changes introduce regulatory provisions within policies designed to enhance financial inclusion through streamlined processes and better insurance services. The Financial Services Authority, the regulator of the sector, emphasized that these enhancements will be supported by improved governance in regulatory procedures between policyholders and insurance companies.
The updated regulations aim to reduce complaints and disputes among parties involved in motor insurance while boosting confidence in the sector across the Sultanate of Oman.
A key feature of the amendments is the revision of the unified policy to strengthen consumer protection. The changes include a suite of benefits intended to expand motor insurance coverage and elevate the quality of services provided to policyholders.
Abdullah bin Salim al Salmi, Executive President of the Financial Services Authority, highlighted that the amendments will yield numerous economic and social advantages, notably by reinforcing the national social protection system, partly funded by insurance companies. They are expected to improve community preparedness for climate-related risks, enhance recovery capabilities following natural disasters, and support the financial stability and sustainability of both individuals and institutions.
Abdulaziz bin Saif al Wahshi, Senior Customer Service Quality Specialist, revealed that natural disaster coverage will be introduced for the first time in third-party insurance. Given that 70% of insured vehicles in Oman have third-party insurance, and most vehicles affected by recent weather events were covered by this insurance type, it is crucial to implement measures to ensure financial and economic stability, minimizing further losses to individuals and businesses.
Data from the National Centre for Statistics and Information shows that total compensation paid by vehicle insurance companies reached RO 95.4 million, a 27.6% increase compared to 2023. Total direct vehicle insurance premiums amounted to RO 118.2 million in 2024, reflecting a 6.4% rise from the previous year.
The insurance sector in Oman also experienced notable growth in 2025, with companies listed on the Muscat Stock Exchange reporting total net profits after tax of approximately RO 27.1 million in the third quarter. This improvement is attributed to the sector’s stability and sustained revenue growth, particularly in motor and health insurance, despite intense market competition.
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The recent regulatory amendments in Oman’s motor insurance sector signal a strategic move towards enhanced financial inclusion and consumer protection, presenting a valuable opportunity for businesses to leverage improved trust and service quality. Smart investors and entrepreneurs should consider the rising demand for comprehensive insurance products, especially with the introduction of natural disaster coverage, as a catalyst for growth in a stable yet competitive market. This also underscores the importance of innovation in risk management and customer service to capitalize on evolving economic and climate resilience needs.
