Oman’s Capital Market Authority Issues New Regulation Ensuring Financial Sustainability for Insurance and Takaful Sector

The primary role of insurance and Takaful companies is to provide insurance cover for individuals, properties and economic institutions. Apart from this, insurance and Takaful companies also serve as an important investment tool, whereby they invest premiums collected with the aim of using these returns to protect policyholders’ rights by providing reserves and sufficient liquidity to meet policy claims. The effectiveness of these investments made also dictates the insurance company’s efficiency and financial sustainability.

The Capital Market Authority (CMA) of Oman issued a new regulation pertaining to the organisation of investments made by companies in the insurance and Takaful sector. According to local media reports, once implemented, this regulation is set t...