BASEL: The International Association of Insurance Supervisors (IAIS), headquartered in Basel, Switzerland, has published a detailed assessment confirming the Sultanate of Oman's advanced regulatory and supervisory framework for the insurance sector. The evaluation demonstrates Oman's strong compliance with the Insurance Core Principles (ICPs).
This follows a comprehensive assessment of the Financial Services Authority (FSA) under the IAIS Membership Assessment Programme in early 2024, making Oman the fifth country worldwide to undergo this review — after Guernsey, Morocco, Mexico and Albania.
The year-long IAIS evaluation involved multiple phases, including preparation, training, legislative review, and an on-site visit. The assessment team — comprising representatives from international regulatory bodies and independent experts — met with the FSA and key sector stakeholders, including insurance companies, brokers, auditors, government officials and the Oman Insurance Association.
The report results indicate a strong level of compliance with international insurance standards, with the majority of principles rated as "Compliant" or "Largely Compliant." It highlights Oman's significant progress in implementing risk-based requirements and enhancing technical supervision, including actuarial review.
The report also provides recommendations for developing certain supervisory aspects, forming a basis for performance improvement and policyholder protection in the insurance market.
The IAIS programme evaluates regulatory bodies' adherence to 24 international insurance standards, which serve as the benchmark for effective insurance supervision. It also reviews supervisory policies and practices in the insurance sector, measuring their alignment with IAIS global standards.
Notably, the IAIS Insurance Core Principles represent a global framework designed to guide regulators worldwide in implementing best practices for insurance regulation and supervision. These standards cover various supervisory aspects, including governance, risk management, policyholder protection and financial stability, serving as a key reference for assessing regulatory effectiveness and promoting legislative harmonisation among nations. - ONA
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