Recent insurance market index year 2023- 2024 statistics indicate a concerning deterioration in key performance indicators. This trend raises important questions about underwriting discipline, profitability quality, capital strength and overall market resilience.
The responsibility to address these structural challenges is shared between the Oman Insurance Association and the Financial Services Authority, as the industry body and regulatory authority respectively. Coordinated leadership, policy alignment and measurable corrective actions are now essential.
From a governance and regulatory perspective, the following questions require clear answers:
1. What corrective measures are being implemented to restore underwriting profitability and technical performance?
2. How is capital adequacy being strengthened to ensure long-term solvency?
3. What steps are being taken to enhance market discipline and risk management standards?
4. How will transparency and disclosure standards be improved to rebuild investor confidence?
Sustainable growth cannot be achieved through premium expansion alone. It requires:
• Balanced portfolio construction
• Prudent reserving practices
• Strong corporate governance
• Effective supervision and enforcement
• Market-wide strategic alignment
Furthermore, all strategic initiatives, reform measures and performance benchmarks must be transparently communicated to shareholders and stakeholders through the Muscat Stock Exchange. Transparency is not optional — it is a cornerstone of market confidence and long-term sustainability. The insurance sector is a reflection of the broader economy. Its stability and growth are vital to national financial resilience.
Therefore, proactive, measurable and publicly disclosed action plans are not merely desirable — they are imperative.
Murtadha M J Ibrahim al Jamalani
The writer is an insurance expert & economist researcher
Oman Observer is now on the WhatsApp channel. Click here
