Muscat, Oman - The Financial Services Authority (FSA) held its regular meeting with the chairpersons of insurance firm’s boards. It was held in the presence of H.E. Abdullah bin Salim Al Salmi, Executive President of the FSA, to address key current challenges, explore development opportunities, and strengthen coordination between the FSA and insurance sector firms.

It covered a range of key challenges affecting the sector’s current reality and future aspirations, foremost among them the shift from quantitative growth to sustainable value. The FSA stressed the importance of adhering to technical pricing based on actuarial principles and risk factors, linking growth to risk-adjusted profitability rather than size, and using loss ratios as a key indicator of financial soundness. These measures aim to correct market and pricing logic and reinforce sector sustainability.

Challenges in motor insurance losses were also reviewed, shedding light on the need for integrated solutions involving regulatory bodies, operational entities, and the insurance sector to support the sustainability of this vital segment, reduce losses, and enhance market stability. The meeting further emphasised promoting a service culture in claims management, with the FSA noting that the credibility of the insurance sector is measured at the point of claim, calling for a shift from dispute management to trust-building and improving the customer experience.

The session also addressed governance, sound practices, and digital transformation as fundamental pillars for sector sustainability, stressing the need to build an institutional digital framework that enhances data integration, supports governance and market discipline, improves decision-making efficiency, and boosts sector readiness. Structural challenges facing insurance companies were reviewed, alongside discussions on capital, market structuring, and the role of the new legislative framework in strengthening sector resilience and risk management capacity.

Additionally, localisation and operational capacity building were reviewed, with an emphasis on linking these programmes to clear performance indicators, considering them essential for institutional sustainability and sector readiness.

The meeting came to an end with a discussion on the cost of health insurance and the importance of financial discipline in settling healthcare dues for providers, ensuring system sustainability and protecting the interests of all parties.