MUSCAT — Oman’s Financial Services Authority (FSA) has issued warnings to Muscat Insurance and Arabian Falcon Insurance for failing to meet the country’s health insurance retention requirements, a move aimed at reinforcing financial stability within the sector.
In a statement released in March 2025, the FSA confirmed that both insurers had violated the mandate to retain at least 40% of their net health insurance premiums within Oman. This retention requirement was established to bolster the local economy by ensuring that a portion of health insurance premiums remain within the Sultanate, reducing reliance on external markets and promoting the development of the domestic insurance sector.
The FSA emphasized that its action underscores the authority’s commitment to enhancing the financial sustainability of Oman’s insurance market, ensuring consumer rights are protected, and supporting the growth of local investments. The regulator also highlighted the importance of retention in fostering local expertise in underwriting and risk management, thereby reducing the industry’s dependence on foreign reinsurers.
Ahmed Bin Salim Al Harrasi, Director-General of the FSA’s Market Regulatory & Development Unit, explained that retaining health insurance premiums within Oman not only strengthens financial stability but also contributes to the development of national professionals specializing in health insurance.
The retention requirement was introduced in the Health Insurance Rules set forth by the Capital Market Authority (now the FSA) in October 2019, as part of the Unified Health Insurance Policy. The policy mandates that health insurers maintain a minimum of 40% of net premiums within the country to support the long-term growth and stability of the health insurance sector.
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