Muscat: The Financial Services Authority (FSA) has issued a circular requiring all insurance companies licenced to provide motor insurance in Oman to maintain a minimum level of electric vehicle (EV) insurance underwriting relative to the size of their motor insurance portfolios.
Under the circular, insurers must ensure that EV insurance policies account for no less than 0.2 per cent of their total motor insurance portfolios, with full compliance required by December 31, 2026.
The FSA said the measure forms part of its regulatory efforts to strengthen confidence in the insurance sector and ensure the availability of insurance products that keep pace with developments in the automotive market and the growing transition towards clean energy solutions.
The authority noted that the initiative also aims to safeguard customer interests by enhancing access to insurance coverage for electric vehicle owners and supporting the sustainable growth of the sector.
To facilitate monitoring and assess challenges that insurers may encounter in meeting the minimum threshold, the circular requires companies to submit monthly reports on their EV insurance underwriting performance.
Insurance companies have also been instructed to introduce a dedicated classification code for electric vehicles within their electronic systems and databases. The move is expected to improve the tracking of EV-related insurance policies and claims and support the generation of accurate data and statistics covering underwriting volumes, premiums, claims, compensation payments and loss ratios.
The FSA reaffirmed its commitment to ensuring the availability of adequate insurance coverage for electric vehicle owners and urged all insurers to comply with the requirements of the circular to avoid regulatory violations.
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