Middle East

Regulator concerned about conflict of interest

Oman’s insurance regulator, the Capital Markets Authority (CMA), has tightened the rules for insurance brokers. One of the main objectives of the CMA ruling, which took over the regulation of the insurance industry from the Ministry of Commerce in August 2004, is to reduce conflict of interest issues for insurance brokers. So, for example, insurance brokers who act as risk management advisors on government projects cannot be involved in the placing of such cover with either local or international insurance companies. A recent CMA review of the insurance arrangements of a number of large public sector projects revealed several examples of conflicts of interest for insurance brokers. The Omani market is on the verge of a large scale financial market reform process. An insurance bill is currently being debated in parliament. The CMA said in a statement that the objective was to improve the effectiveness of its supervision by promoting internationally approved regulatory practices. The CMA recently joined the International Association of Insurance Supervisors, the Switzerland based global body.