The supervisory authority has decided to cancel the licenses of insurance companies that have recently merged. New licenses will be issued to the entities arising from these reconciliations.
Four companies have recently started merger transactions: Arabian Insurance Company and Falcon Insurance, which have gathered under the name of Arabian Falcon and Muscat Insurance and Muscat Life Insurance whose new name has not been disclosed yet.
The purpose of this directive is to protect the interests of policyholders.
These consolidations are encouraged by the new regulation which has doubled the minimum capital of insurance companies from 5 million OMR (12.9 million USD) to 10 million OMR (25.8 million USD).
The market would count 10 national companies, 10 foreign branches and one reinsurer instead of the current 23 companies
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