Muscat – Financial Services Authority (FSA) has issued a formal circular requiring all insurance companies licensed to provide motor insurance to maintain a minimum level of underwriting for electric vehicles (EVs). This mandate stipulates that EV insurance must account for at least 0.2% of a firm’s total motor insurance portfolio. Insurance companies are required to achieve full compliance with this new threshold by December 31, 2026. This directive aims to ensure that insurance coverage remains aligned with rapid developments in the automotive market and supports the national transition toward clean energy.

To facilitate effective oversight, the FSA has mandated that insurers submit monthly reports detailing their underwriting performance regarding electric vehicles. Furthermore, companies must introduce a dedicated classification for EVs within their electronic databases and internal systems. This requirement is designed to improve the tracking of policies and claims, ultimately supporting the generation of accurate industry statistics, including premiums, compensation payments, and loss ratios. By implementing these measures, the FSA aims to enhance market confidence and ensure that EV owners have access to appropriate insurance coverage, while warning companies that failure to comply with these provisions will be considered a breach of regulatory requirements.