OMAN Law and Practice Contributed by: Abdulredha Al Lawati, Zainab Al Lawati, Daniyal Khalid and Aoun Al Zadjali, ALC Lawyers & Counsel
9.2 Forthcoming Reforms and Market Impact Oman’s core Insurance Companies Law dates from 1979. Although amended repeatedly, it was enacted for a materially different insurance market, and the increasing complexity of commercial insurance, rein- surance, digital distribution and modern claims han- dling continues to create pressure for incremental regulatory modernisation. There is, however, no pub- licly confirmed timetable for wholesale replacement of the Law. The immediate changes arise from reforms already adopted in 2026. Decision E/12/2026 regulates insur- ance loss assessment and estimation, including cau- sation, policy response, valuation and technical report- ing. Regulation of actuarial-services firms similarly increases scrutiny of the technical basis for pricing, reserving and solvency, while continued development of Dhamani and electronic insurance is increasing the auditability of policy and claims administration. Longer-term changes include IFRS S1 and S2 imple- mentation from 2029, with Scope 3 reporting following in 2030. Accordingly, the near-term trend is likely to remain incremental through detailed FSA regulation, while the 1979 Law continues as the core statutory framework.
gives the FSA broad responsibilities for supervision and fair market conduct. The clearest recent example is motor insurance. The 2026 amendments to the Unified Motor Insurance Policy introduced defined claims-handling periods, consequences for specified delays, compulsory nat- ural-disaster protection and a direct-compensation mechanism. These measures increase the importance of compliance with the claims process as well as sub- stantive coverage. Loss Assessment and Technical Evidence Decision E/12/2026 introduced a detailed regulatory framework for insurance loss assessment and estima- tion. Licensed assessors are subject to requirements concerning causation, policy response, valuation and reporting, and the regulation provides a mechanism for a second assessment where valuation is disputed. In substantial claims, the authors’ experience is that valuation, causation and coverage should remain analytically separate; a technical valuation should not itself be treated as an admission of policy liability. Digital and Prudential Supervision Decision 80/2023 regulates electronic insurance oper- ations, while Dhamani continues to centralise health- insurance approvals, claims and settlements. These developments increase digital traceability and require stronger operational resilience, data governance and internal controls. Risk-based solvency and IFRS 17 are established ele- ments of the framework. In 2026, the FSA also intro- duced regulation of actuarial-services firms, while Decision E/7/2026 provides for future IFRS S1 and S2 sustainability reporting. The overall direction is towards greater documentation, technical account- ability and measurable claims-handling standards.
215 I NSURANCE L I T IGATI O N 2026
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