Oman Reinsurance Company SAOG (Oman Re) has reaffirmed its leadership role in strengthening the resilience and sustainability of Oman’s insurance sector, following the Sultanate’s landmark introduction of natural catastrophe coverage within third-party motor insurance policies – the first such initiative in the Gulf Cooperation Council (GCC) region.
This pioneering scheme reflects Oman’s forward-looking regulatory framework and proactive response to climate-related risks, particularly in the aftermath of a series of floods and cyclones, which highlighted the vulnerability of individuals and businesses to natural catastrophes.
Recognizing the need for a comprehensive and sustainable protection mechanism, the Financial Services Authority (FSA) initiated an industry-wide program to develop a structured and long-term solution. A dedicated steering committee was subsequently formed under the Oman Insurance Association (OIA), comprising senior leaders from seven insurance companies and chaired by Oman Re, which has played a central role in coordinating and driving the initiative.
As the national reinsurer and lead reinsurer of the scheme, Oman Re spearheaded the technical, actuarial and risk assessment workstreams in collaboration with international experts that formed the foundation of the program. In strategic collaboration with Gallagher Re, Oman Re led multiple technical workshops, coordinated pricing and catastrophe modelling exercises and facilitated engagement with international brokers and risk advisors to ensure alignment with global best practices. These efforts resulted in the determination of appropriate coverage limits, pricing structures and risk-sharing mechanisms, ensuring the long-term sustainability for insurers, reinsurers and policyholders.
Following extensive technical review and market consultation, the framework was approved by the Financial Services Authority after finalizing its legislative cycle, underscoring its national strategic importance.
The development process involved close and constructive collaboration among underwriting, claims, actuarial, legal and operational teams across Oman’s insurance sector, with local insurance companies making a critical contribution through their practical insights and market expertise. Their active participation ensured that the scheme is operationally sound, transparent and efficiently implementable. This collective approach has delivered a balanced solution that strengthens customer protection while maintaining market stability.
As part of a comprehensive readiness initiative, Oman Re and the Financial Services Authority conducted a series of technical and awareness workshops to support insurers in understanding the product design, operational requirements and claims procedures, ensuring consistent implementation and a seamless customer experience across the market.
Commenting on this milestone, Romel Tabaja, Chief Executive Officer of Oman Re, said:
“The introduction of natural catastrophe coverage within third-party motor insurance represents a defining milestone for Oman’s insurance sector and the wider region. It reflects the strength of collaboration between regulators, insurers, reinsurers, and international partners in addressing evolving climate and catastrophe risks. As the lead reinsurer of this scheme, Oman Re is proud to have played a pivotal role in its development, right from technical design and pricing to regulatory engagement and market readiness. This initiative strengthens financial resilience, protects communities, and reinforces Oman’s position at the forefront of insurance innovation in the region.”
With the scheme now officially launched, the introduction of natural catastrophe coverage within motor insurance policies is expected to significantly enhance financial protection for motorists affected by floods, cyclones and other natural perils. It will reduce the financial burden on individuals and businesses while strengthening confidence in the insurance system.
Oman Re will continue working closely with regulators, insurers and industry partners to support its effective execution, ongoing monitoring and long-term sustainability, ensuring continued value for policyholders and the wider economy.
