The role of the Capital Market Authority in protecting the insurance sector in Oman

Abstract

In 2004 the responsibilities of the insurance sector was transferred from the Ministry of Commerce and Industry to the Capital Market Authority (CMA) in order to develop and restructure the legislative and regulatory nature of this sector. CMA has exercised its role based on the provisions of the Insurance Law to protect the financial ability of insurance companies. The insurance law grants powers to the executive president of the CMA to ensure that insurance companies can satisfy their financial obligations. The question arises as to the limits and effectiveness of these powers. CMA also regulates the conduct of insurance companies by a cluster of regulations issued under the title of Code of Conduct. The question arises to the mandatory nature of these codes. The study includes an analysis of the role of the CMA in protecting the insurance sector in the Sultanate of Oman through the mechanisms of guaranteeing the financial ability of the insurance companies as well as an analysis of the legal and mandatory nature of the codes of conduct issued by CMA.