Capital Market Authority

Adopts Insurance Services Quality Guidelines

Al Mamari: Satisfaction of policyholders is one of the significant methods for establishing competitive environment in the insurance market

Based on CMA’s vision to promote the concept of customer service quality, and to increase the level of company compliance with the responsibilities resulting from providing insurance services, and to cope with modern technologies in the field of customer services, CMA has issued a Guideline for the quality standards of insurance services. The guidelines contain minimum level of quality standards provided by insurance companies and brokers in the Sultanate.

Mr. Ahmed Al Mammari, Director General of Insurance Supervision said that evaluating the quality level of services provided and continued development of these services up to policyholders’ expectations and satisfaction are crucial methods to establish a competitive environment in the insurance market, in order to ensure achieving better performance level for dealing with customers.

Al Mamari clarified that insurance companies are requested as per the Guidelines to set written and approved policies and standards by their boards to ensure the quality of their services. These standards shall be continuously audited and evaluated by the compliance officer and quality controller of the company. CMA will also monitor the companies’ compliance in adopting and applying these policies and standards.

Al Mamari pointed that these Guidelines were set after evaluating the insurance sector in the Sultanate, and considering the experience of pioneer countries in the insurance industry, besides considering the approved standards by IAIS.

The Guidelines states the role of insurance companies’ boards, either national or foreigner companies operating in the Sultanate, in  reviewing and approving written policies for comprehensive quality standards for insurance services. The Guidelines also provide clear mechanisms for promoting the communication levels with customers through the front desk of insurance companies. It encourages companies to establish effective channels of communication between the companies  and customers through modern communication channels like; phones, emails or social media. It is also required to have qualified human resources to enhance the communication with customers.

The Guidelines also highlighted the importance of having clear insurance policies that fulfil the customers’ requirements, and informing customers with rights and responsibilities of both of the company and the customer. Companies are also required as per the Guidelines to provide customers with brochures for each insurance product including a summary of the benefits, exclusions, conditions, claim procedures, complaints procedures, and Sharia opinion regarding Takaful products.

Companies are requested to set policies to provide effective and clear mechanisms for customers to review their policies or claims. Companies are also requested to set a specified mechanism to facilitate modifying or renewing the policies without any delay, and to provide insurance benefits according to sound procedures.

The Guideline also specified some rules for claims settlements and confirmed the need to enhance electronic services of insurance companies.

It is worth mentioning that insurance services field witnesses great expansion through companies’ branches, brokers and insurance agents in the Sultanate. There are 115 branches of insurance companies in the Sultanate, 66 brokers mostly concentrated in Muscat Governorate, 92 insurance agents. CMA urges insurance companies to expand in the Wilayats of the Sultanate to achieve more competitiveness in terms of service quality and prices.