A decision to Omanise insurance agents was taken by the Capital Market Authority (CMA) as part of its investment initiatives in establishing small and medium enterprises.
To facilitate the transition, the regulator made amendments to the Insurance Agents Regulation granting the agents six months to adjust their situation except the provision for Omanisation which is required in three years. According to Shaikh Abdullah Salim al Salmi, Executive President of CMA, the new amendment emphasises on the importance of Omanisaton of the profession to achieve added value to the national economy and the partnership with the private sectors.
“The amendment was made after assessing the situation in light of the former version of the regulation which provides for a number of the requirements for obtaining the licence”, he said in a statement issued by the CMA. Al Salmi said that insurance agents play an important role in marketing the insurance products over a large geographical area. The insurance sector has witnessed legislative and regulatory developments this year such as the amendments to the Motor Vehicle Insurance Law, the Unified Motor Insurance Policy and the Insurance Brokers’ regulation.
Unified Motor Insurance Policy affects the greatest segment of policyholders as the motor insurance in the Omani market represents about 44 per cent, according to insurance indicators last year. It is important on the local, regional and international levels due to the vital role of motor vehicles in the daily activities of individuals, commercial, social and entertainment activities of the community. The insurance sector achieved considerable growth at 14.8 per cent in average during the past years with insurance premiums at about RO 0.5 billion as per the unaudited financial statements of the past year.
Source: OmanObserver