CMA highlights role of insurance sector in economy

03/03/2013 09:58 AST

m Al Salmi, executive president of the Capital Market Authority (CMA), stressed on the role the insurance sector can play in the national economy and sustainable development.

Al Salmi, speaking at a meeting with the board of directors of the Omani Insurance Association, pointed out that the insurance sector plays an important role in the modern society, in addition to providing insurance protection to many projects — for individuals as well as institutions.

"The insurance sector contributes in pooling the savings to finance development plans or investment in economic schemes through increasing the capitals of insurance companies operating in the country and improving solvency levels, risk management in such companies, development of national manpower of the insurance sector, development of underwriting mechanisms, provision of products and risk measurement," he added. Abdullah Salim Al Salmi explained the importance of cooperation of the association to protect policyholders through the provision of best insurance products at fair and competitive prices, besides developing claims services in insurance companies.

He said the CMA has made constructive efforts to upgrade the national cadres working in the insurance sector by way of training programmes to impart technical skills and knowledge and acquaint them with best internationally-recognised practices. He also said the CMA would cooperate with the association in identifying training needs to replace expatriate workers with the nationals.

The meeting discussed recommendations of the workshop organised by CMA on insurance issues from a legal point of view. The members of the board of directors of the association commended the recommendations and stressed the importance of its implementation in collaboration with the competent authorities to explore solutions for various problems being faced by the Omani courts when hearing insurance cases.

Spare parts prices

The meeting discussed increase in the prices of motor spare parts which results in high-insurance premiums on the policyholders and the efforts exerted by Capital Market Authority and Consumer Protection Council to reduce the prices of motor spare parts in line with the prices in the neighbouring countries.

The meeting also discussed the electronic link between insurers and ROP and urged all the companies to join the link.

The meeting also recommended drawing up strategy between CMA and the insurance association to educate the public on insurance sector and the salient developments on the local, regional and international arenas.

Times News Service