MUSCAT: To enhance the readiness of the regulatory framework governing supporting services for the insurance sector in the Sultanate of Oman, Dr Khamis bin Saif Al Jabri, Chairman of the Board of Directors of the Financial Services Authority (FSA), issued a decision approving the Regulation for Actuarial Services Firms. Through this regulation, the FSA establishes a clear professional framework for practising this specialised activity and reinforces standards of quality and efficiency in the provision of actuarial services to insurance and Takaful insurance companies.
The decision also grants a one-year grace period for existing actuarial firms to regularise their status in accordance with the provisions of the regulation, ensuring an orderly transition towards the full implementation of the new regulatory framework.
Actuarial services firms are considered one of the fundamental pillars for enhancing the efficiency of the insurance sector and ensuring sound technical and financial practices. The tasks of approved firms include preparing periodic actuarial reports, assessing risks, calculating technical provisions, studying pricing policies, and analysing the financial position and future obligations of insurance companies. These highly specialised technical functions constitute a key foundation for sound insurance decision-making.
The issuance of the regulation is based on the provisions of the Executive Regulation of the Insurance Companies Law, which requires insurance companies to appoint an actuary or contract with an actuarial office approved by the FSA, ensuring that actuarial studies and reports are issued by qualified entities that meet the approved professional requirements.
The regulation sets out an integrated framework for the approval of actuarial services firms. In its second chapter, it outlines the requirements for office approval, most notably that all founders or owners, as well as at least one actuary, must hold a Fellowship qualification in actuarial science from one of the entities specified in the regulation or from a recognised international actuarial institute, subject to the approval of the FSA.
The regulation also grants the FSA supervisory and oversight powers over approved firms, including inspection and the imposition of administrative penalties in the event of violations of its provisions. This enhances professional compliance and raises the level of discipline within the market. The regulation specifies administrative penalties ranging from issuing a warning to the violating office or imposing an administrative fine of not less than RO 1,000 and not exceeding RO 50,000. Penalties may also extend to the temporary suspension of the office’s approval until the causes of the violation are rectified, or the cancellation of the office’s approval.
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