CMA seeks related party opinion on Insurance Brokers’ Regulation

08/04/2015 07:42 AST

The Capital Market Authority (CMA) has finalised the draft Regulation for Insurance Brokers as part of its endeavour to review the laws and regulation regulating the insurance industry to upgrade the profession and protect the interest of the participants and policyholders.

CMA circulated the draft regulation to all insurance brokers and companies operating in the Sultanate as well as law firms for their technical and legal opinion for a common understanding on the regulation of insurance brokerage firms prior to issuing the regulation. The amendments cover a number of issues such as the ceiling of the capital required for establishment of the company. They also address the issue of post payment of insurance premium and direct transfer to the insurance companies further to changes on certain financial obligations required for licensing insurance brokers and specification of the rates required for carrying out the business. The changes also include the facilities and processes which could encourage insurance brokers to expand geographically in the various parts of the Sultanate as well as Omanisation of the profession.

The amendments also included the events of suspension of the broker. CMA has posted the draft amendments on its website: www.cma.gov.om for easy access. CMA is concerned to regulate the business of insurance brokerage for being one of the pillars of the industry which provides employment opportunities for the young graduates of accounting, business, marketing and other economic sciences in addition to professional marketing of insurance products.

Oman Daily Observer