FSA denies motor insurance price hike rumours
Muscat: The Financial Services Authority (FSA) has dismissed social media rumours alleging a rise in the minimum prices of vehicle insurance by insurance companies in Oman.
In an official statement, the Authority clarified that it has not approved any increase in minimum insurance tariffs and continues to monitor vehicle insurance pricing to ensure stability within safe and appropriate limits.
The FSA emphasized its adherence to the principles of a free market, where insurance pricing is determined by supply and demand dynamics, company performance, and portfolio profitability. The statement noted that competition in the insurance sector is sufficient to regulate fair pricing and that any tariff changes by insurers must be justified and reported to the Authority in advance.
The Authority urged all policyholders and members of the public to follow its official social media channels for accurate updates on the insurance sector. It reiterated its role as the regulatory and supervisory body for the non-banking financial sector in Oman.
The FSA's statement follows the circulation of an 'official notice' that claimed the minimum third-party motor insurance premium had been amended to OMR 65, effective August 1, 2025. The notice, which cited a directive by the FSA in coordination with the Association of Insurance Companies, stated that the decision was based on an actuarial study of the motor insurance market. However, this notice contradicts the FSA's public denial of any approved price increase.
the Authority maintains that no official approval has been granted for increasing the minimum insurance premium.
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