Rules for Investment linked Insurance Products

 

CMA Obligates Insurers to Comply with the new Rules

 

 

The Capital Market Authority has urged all insurance companies and brokers   to comply with the Rules for Marketing  Investment Linked Insurance Products in the Sultanate which includes the minimum required standards for investment linked products and the requirements for operation and management of such products and disclosure requirements.

 

CMA has issued a circular to all insurers requiring to obtain CMA’s  approval prior to marketing any investment linked product  or creation of any linked funds. Insurers who had already commenced such business must renew their approvals in six months.

 

The move aims at putting in place sound standards for such business to enhance the transparency, disclosure and the protection of the rights of policyholders to take informed  insurance and investment decisions.

 

Investment linked policies contribute to diversification of insurance portfolio of insurers and reduce concentration of premiums in specific products in view of the increasing demand for such new products for added value to the sector and its contribution to the national economy.

 

The business is expected to boom specially after the banks were licensed to undertake bankassurance business through their banking networks.

 

The circular included the rules and requirements for obtaining CMA’s consent for carrying out any unit linked investment or any investment schemes or creation of linked funds.