Muscat,
The Financial Services Authority (FSA) today approved the regulation for co-insurance in the health insurance pursuant to the Insurance Companies Law promulgated by Royal Decree No. 12/79.
The regulation aims to put in place a groundwork to increase retention ratios of insurance premiums inside the Sultanate of Oman and reduce the need for reinsurance abroad by allowing insurance companies who have not obtained licenses to carry out health insurance to obtain licenses for co-insurance to benefit from this health insurance product. This will allow insurance companies to act as reinsurer for such product to enhance the retention for health insurance premiums inside the Sultanate of Oman.
The regulation was issued after consideration of the recommendations of an actuary study on the prices of health insurance prepared in collaboration with an international consultancy firm.
The FSA aims from the move to support the establishment of companies specialized in health insurance to provide best services to the customers. Companies (local and foreign) that are currently carrying out reinsurance of health insurance policies with specific reinsurers outside the Sultanate of Oman will be able to avoid incurring huge losses expected from such type of insurance. The retention ratio in health insurance was 79% in 2023.
