CMA eyes AI-driven insurance growth, prioritising consumer protection in oman

MUSCAT, FEB 21

The Capital Market Authority (CMA) in Oman sees Artificial Intelligence (AI) as a transformative force for the insurance sector, but emphasizes responsible implementation to protect policyholders and maintain institutional stability.

Speaking at the 34th General Arab Insurance Federation (GAIF) Conference, underway at the Oman Convention and Exhibition Centre, CMA Executive President Abdullah bin Salem al-Salmi highlighted AI's potential for advancements in underwriting, actuarial analysis, and customer service. He stressed the shared responsibility among stakeholders to use this technology ethically.

Acknowledging the rapid development of AI, Al Salmi assured the public that the CMA is actively developing regulatory frameworks. "These frameworks will protect data privacy for both service providers and beneficiaries," he stated.

Further demonstrating the CMA's commitment to innovation, Al-Salmi explained their approach: "Our regulations allow companies to explore new activities responsibly, with regulations implemented based on local market experience."

The CMA and Central Bank of Oman are also collaborating to create an experimental environment for FinTech services in insurance, capital markets, and the broader financial sector.

This proactive approach positions Oman to leverage AI responsibly, driving insurance sector growth while safeguarding consumer interests and institutional stability.

While AI offers potent tools for regulatory authorities, navigating its impact on the insurance industry requires careful oversight and ethical considerations.

AI automation may displace some current professions, but it also opens doors to entirely new career paths. The key lies in upskilling the workforce with specialized expertise for the AI-driven digital insurance revolution.

The challenge lies in finding the right balance between fostering innovation and mitigating risks. Allowing insurers to explore AI-powered initiatives can spur creative problem-solving and generate valuable insights. These real-world experiments can then inform the development of nuanced regulations for a vibrant and responsible AI-powered insurance market.