Car insurance prices rising in Oman? Here's what the authorities really say

Time of India

a day ago

Oman FSA confirms no approval has been given to raise vehicle insurance premiums/Image: File
The Financial Services Authority (FSA) of Oman has officially denied all rumours and reports about a rise in vehicle insurance premiums. In multiple public statements in July and August 2025, the FSA emphasized that it has not granted approval to any insurance company to increase mandatory third-party motor insurance premiums or any other vehicle insurance tariffs.
The Authority reaffirmed its ongoing commitment to monitoring insurance pricing closely to maintain stability and fairness in the market.
TL;DR:
The Oman FSA confirms no approval has been given to raise vehicle insurance premiums, debunking circulating rumours and supposed official notices.
The insurance sector in Oman operates under regulated market principles, with pricing governed by supply, demand, and company performance, subject to FSA oversight.
FSA warns it will take strict legal action against any insurer violating approved pricing, urging consumers to report irregularities through official channels.
Detailed overview
Background and rumours
In mid-2025, social media and unofficial channels began circulating claims of a mandated hike in minimum third-party vehicle insurance premiums to OMR 65 (approx. USD 170) effective August 1, 2025. This alleged directive was said to come from the FSA in coordination with insurance companies, based on an actuarial analysis of the market.
FSA's clarification and position
The Financial Services Authority promptly refuted these claims in multiple official statements. It declared that no such approval or decision has been made to raise insurance premiums. The FSA stressed that insurance tariffs must be justified and notified to the Authority before implementation and that it continuously monitors pricing to uphold fair competition and market stability.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
This Could Be the Best Time to Trade Gold in 5 Years
IC Markets
Learn More
Undo
The Authority explained that insurance pricing follows free-market dynamics influenced by:
Supply and demand balance
Insurer portfolio performance and profitability
Sector competition ensuring fair pricing
This transparency and regulatory control ensure consumers are protected from arbitrary price increases.
Legal enforcement and consumer protection
FSA took a firm stance that any insurance company raising premiums without prior approval breaches the regulatory framework and principles of fair competition. It warned of legal consequences against violators, including investigations and penalties, to protect policyholders' rights and maintain market order.
Consumers are actively encouraged to report any irregularities or suspected illegal premium hikes directly to the FSA through its official channels.
About the Financial Services Authority (FSA)
The FSA is the official regulatory and supervisory body governing Oman's non-banking financial sector, including insurance. Its responsibilities include:
Licensing and supervision of insurance companies
Ensuring market stability and protecting consumers
Enforcing compliance with pricing and competition laws
Monitoring insurance products and practices
With a strong regulatory mandate, the FSA plays a pivotal role in maintaining trust and fairness in Oman's insurance sector.
The Financial Services Authority's firm and clear refutation of any car insurance premium hike approval removes uncertainty for vehicle owners and businesses in Oman. By maintaining a regulated, transparent, and competitive insurance market, the FSA is ensuring stable costs for motor insurance, protecting consumers from unapproved price hikes, and reinforcing confidence in the insurance ecosystem.
Omani consumers and stakeholders are advised to rely solely on official communications from the FSA and to report any suspected non-compliance. The Authority's vigilance and readiness to take legal action underline its commitment to market fairness and sustainable growth