Muscat: The Financial Services Authority (FSA) has issued a new circular requiring all insurance companies licensed to provide motor insurance in Oman to maintain a minimum level of underwriting for electric vehicles (EVs), as part of efforts to support the country’s transition towards clean energy and evolving automotive trends.
Under the circular, insurers must ensure that EV insurance underwriting accounts for at least 0.2 per cent of their total motor insurance portfolio, proportional to the size of their existing motor insurance business. The FSA has set December 31, 2026, as the deadline for compliance.
The authority said the move aims to strengthen confidence in the insurance sector and ensure the availability of suitable insurance coverage that keeps pace with rapid market developments, particularly the growing adoption of electric vehicles.
The circular also highlights the FSA’s commitment to protecting consumer interests by enhancing insurance services in line with changes in the automotive market and Oman’s broader sustainability goals.
To monitor implementation and address potential challenges, insurance companies will be required to submit monthly reports detailing their EV underwriting performance. Additionally, insurers must introduce a dedicated classification or coding system for electric vehicles within their electronic databases and operational systems.
According to the FSA, the measure will improve the tracking of EV-related insurance policies and claims while enabling more accurate data collection on underwriting volumes, premiums, compensation payments, claims and loss ratios.
