OMAN Law and Practice Contributed by: Abdulredha Al Lawati, Zainab Al Lawati, Daniyal Khalid and Aoun Al Zadjali, ALC Lawyers & Counsel
7.5 Forward Outlook and Market Response Geopolitical uncertainty is likely to produce closer scrutiny of particular risks rather than a wholesale change to the Omani insurance market. Policy word- ing will remain important for sanctions, war and politi- cal violence, marine restrictions, cyber-events, sup- ply-chain interruption and aggregation. Insurers are likely to continue strengthening screening and claims escalation, while insureds should exam- ine exclusions, territorial restrictions and business- interruption triggers before inception. Absent a major domestic test case, disputes are likely to remain driv- en principally by the facts and the individual policy wording. 8. Emerging Risks 8.1 Market Overview of Emerging Risks The Omani insurance market, like other neighbouring markets, is increasingly exposed to emerging risks driven by economic diversification, technological development, climate-related events, and the grow- ing complexity of major infrastructure and industrial projects. Cyber-risk, climate and natural catastrophe exposure, ESG-related liabilities, and risks associated with large-scale construction, energy and infrastruc- ture projects would appear to be among the most significant. Climate-related risks are particularly relevant in Oman, given increasing exposure to cyclones, flooding, and severe weather events. Such losses frequently raise complex coverage questions about causation, policy exclusions, business interruption, loss aggregation, and applicable sub-limits. Cybersecurity is another rapidly developing area. As businesses become increasingly dependent on digi- tal infrastructure, cyber-incidents may result not only in direct losses but also business interruption, third- party liability, and regulatory exposure. This creates potential disputes regarding whether losses fall within dedicated cyberpolicies or traditional property and liability coverage.
cific, including war, territorial restrictions, sanctions, delay, causation and aggregation. The detailed marine consequences are discussed in 4.1 Evolving Trends in Coverage Disputes . 7.2 Sanctions and Payment Challenges Sanctions can affect both coverage and the practical ability to make a cross-border payment. Omani AML/ CFT and targeted-financial-sanctions requirements may apply, while foreign sanctions can independently affect reinsurers, correspondent banks or other par- ticipants. The key questions are whether law restricts the trans- action, whether a foreign regime affects the payment route, and whether the policy contains an applicable sanctions clause. The distinction between coverage and payment is discussed more fully in 4.5 Sanctions and Illegality Issues . 7.3 War, Political Risk and Exclusions Regional conflict has increased scrutiny of war, ter- rorism and political-violence wording, particularly in marine, aviation, energy and project insurance. There is not yet developed Omani case law on modern exclusions arising from the latest events, so cover- age remains dependent on the wording and factual cause of loss. Relevant issues include definitions, territorial restric- tions, concurrent causes and separate extensions. The marine interaction is addressed in 4.1 Evolving Trends in Coverage Disputes . 7.4 Supply Chain and Systemic Loss Events Supply-chain disruption can produce delay, rerout- ing, additional storage, higher costs and business interruption, but economic disruption does not itself establish coverage. The policy trigger remains central, including whether physical damage is required and whether contingent or non-damage extensions apply. A single regional event may also affect multiple insureds or locations and create aggregation, deduct- ible and limit issues. Those principles are discussed in 4.4 Aggregation and Limits of Liability .
213 I NSURANCE L I T IGATI O N 2026
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