By Fahad Al Ghadani — MUSCAT: April 30 - The insurance brokerage companies in the Sultanate should correct their status within 12 months as per the new regulations announced by the Capital Market Authority. The regulation bars any brokerage company from working in the market unless it has obtained proper licence from the authority. The authority will issue three new types of licences, including insurance broker, reinsurance broker or both. Insurance companies have to pay the broking companies within seven days. According to the latest decision, cash compensation should be handed directly to the consumer and not through brokers.
Whoever wants to obtain licence for establishing a brokerage company should submit a bank statement with a balance of at least RO 100,000 to the authority. The regulation lists out a number of certificates and qualifications for applicants for setting up brokerage business in the insurance field. The licence, valid for three years, is renewable. Insurance brokerage companies can now apply for establishing a new branch after completing one year in the business. Insurance brokers are not allowed to work in the Sultanate as agents of foreign companies or own assets in other insurance brokerage companies.
Oman Observer is now on the WhatsApp channel. Click here
