MUSCAT: Recent amendments to regulations governing the motor insurance segment are expected to catalyse tangible improvements that will benefit all stakeholders, as well as propel the economy towards new and promising horizons. This will be achieved by including regulatory provisions in the policy that contribute to enhancing financial inclusion through streamlined procedures and improved insurance services. The improvements will be facilitated by enhanced governance of regulatory procedures between policyholders and insurance companies, according to the Financial Services Authority — the sector’s regulator.
The new amendments to the motor insurance sector aim to reduce complaints and disputes among parties involved in the insurance relationship, while simultaneously increasing confidence in the motor insurance sector in the Sultanate of Oman.
Most notable is the update to the unified policy to enhance consumer protection. These amendments include a package of features and benefits aimed at expanding the insurance protection system for motor insurance policyholders and improving the quality of services provided.
Abdullah bin Salim al Salmi, Executive President of the Financial Services Authority, affirmed that the amendments will contribute to achieving a number of economic and social benefits, most notably strengthening the national social protection system, part of which is financed by insurance companies. The amendments will contribute to raising the level of community preparedness to face climate risks, enhancing the capacity to recover after natural disasters and supporting the financial stability and economic sustainability of individuals and institutions.
Abdulaziz bin Saif al Wahshi, Senior Customer Service Quality Specialist, stated that natural disaster coverage will be included for the first time in third-party insurance. He noted that 70% of insured vehicles in Oman are covered by third-party insurance and most of the vehicles affected by the weather events were also third-party insured. Therefore, it became imperative to find solutions that guarantee financial and economic stability and prevent individuals and companies from incurring further losses, he stressed.
According to the National Centre for Statistics and Information, total compensation paid by insurance companies operating in the vehicle insurance sector reached RO 95.4 million, marking a 27.6% increase compared to 2023. Total direct vehicle insurance premiums reached RO 118.2 million in 2024, reflecting a 6.4% increase compared to 2023.
The insurance sector in the Sultanate of Oman witnessed a significant improvement during 2025, with companies listed on the Muscat Stock Exchange recording total net profits after tax of approximately RO 27.1 million in the third quarter of 2025. This improvement was supported by the sector's stability and continued growth in insurance revenues, particularly in the motor and health insurance sectors, despite ongoing intense market competition.
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