New solvency margin calculation method for Omani insurers

The Omani Capital Market Authority (CMA) has introduced a new risk-based approach for calculating the solvency margin of insurance companies.

The new approach focuses on the adequacy of capital for the risks to which each Omani insurance company is exposed. Previously, the solvency margin was calculated based on the adequacy of assets in relation to liabilities.

Through this technique, the CMA aims to improve the capital of insurance companies, adopt appropriate risk management methods, better protect policyholders' rights and develop new management practices.

Local insurers are expected to comply with the new requirements before 31 December 2022 financial statements.