Under the auspices of HE Sheikh Salim Aufit Abdullah Al Shanfari, President of Dhofar Municipality, the first awareness seminar started this morning at the Salalah Hilton within the awareness programme organized by Capital Market Authority on the importance of insurance for individuals and institutions during the period from 25th -28th of August, 2014.
The seminar agenda started with an opening speech by Mr. Ahmed Ali Al Maamari, Acting Director of Insurance Supervision who confirmed that these seminars are considered as an opportunity for direct discussion and views exchange and for considering the comments and valued recommendations of insurance products' users. He pointed that the current station in the Governorate of Dhofar is one of the various stations among which it is aimed to spread awareness on this significant sector, and to build direct communication ties between CMA and the different segments of the Omani community, and also to recognize obstacles in the development process of the insurance sector and find ways and methods for developing its business.
Removing Obstacles
Al Maamari clarified that CMA is continuously seeking to remove any obstacles in the supervisory and legislative fields as by amending regulations and rules and planning for new insurance products that suit the renewed desires, interests and demands of policyholders, as well as considering their protection and providing them with the best services. CMA is also directing insurance companies, brokers and agents to spread their insurance operation in all over the Sultanate.
On the importance of the insurance sector in the economic system, Al Maamari said, ‘The insurance sector is an important financial base that contributes in activating and developing the economic sectors in different countries around the world. It provides protection against predictable risks that may prevent the economic development movement, besides providing a significant share of the required liquidity for proceeding economic growth’.
Statistics
He added, ‘The audited statistics of the past fiscal year expressed that the insurance premiums exceeded 326 million Omani Riyals in 2012 and 359 million Omani Riyals in 2013 with a 10% growth percentage. The total assets of insurance companies in 2013 increased for 21% to reach 714 million Omani Riyals, and the total investments exceeded 421 million Omani Riyals. The Omanization percentage in this sector reached 66% of its total manpower that we are looking forward increasing it in the coming stage’.
In order to enhance the insurance services and encourage companions between insurance companies, the number of insurance companies increased to 23 companies; 11 of which are national insurance companies, and 11 are foreign insurance and re-insurance companies.
Activating the Role of Related Parties
On the importance of activating the role of related parties, Al Maamart pointed, ‘We confirm CMA’s commitment for facing the challenges and overcoming obstacles that confront the capital market and insurance sectors in the Sultanate, and this can only be achieved by the participation of all related parties like insurance companies, brokers and agents through committing to provide competitive and satisfactory services to policyholders and protect policyholders’ rights, and concerning the companies’ human resources, and developing their internal systems. It is also achieved by aware policyholders of their rights and liabilities when they purchase an insurance policy’.
Electronic Link
He also added, ‘We are aware of the urgent need for reviewing and monitoring all insurance prices especially vehicle insurance in the Sultanate and particularly the compulsory third-party insurance. In order to get accurate information of insurance policies and their prices, an electronic link is built between insurance companies and ROP to find fair prices specified basing on risks facing the vehicle driver. The electronic link was activated since the end of last year. It is considered as a step for enhancing service quality and achieving fairness in specifying insurance premiums, and it is a quality development in the field of vehicle insurance with a positive impact through reducing insurance risks, facilitating insurance arrangements, providing good services and recognizing customers who comply with traffic laws’.
He finally added, ‘With the importance acquired by the insurance sector, we trust the vital role that insurance companies can play, and assure that CMA will continue with extensive efforts and cooperation with these companies in order to develop and enhance this sector and to achieve the aimed goals’.
The seminar included three papers. The first paper, by Ahmed Salim Al Harrasi, discussed insurance principles, the most important available insurance products, besides regulations regulating the Omani insurance market. The second paper, by Hamed Saif Al Siyabi, was on the Unified Vehicle Insurance Policy and its amendments. Badr Al Marzooqi, Director of Vision Insurance Company, Salalah Branch, in the third paper discussed wrong practices in dealing with insurance products and ways of overtaking them.