Muscat – The Financial Services Authority (FSA) has issued the Regulation Governing Insurance Loss Assessment and Estimation Activities under Decision No (E/12/2026), aimed at regulating professional practices related to risk assessment and loss estimation, improving the quality and efficiency of insurance services, and strengthening policyholders’ rights.

The regulation also seeks to reinforce transparency, fairness and impartiality in the assessment of losses and settlement of insurance claims, the FSA said in a press statement.

The new framework forms part of the FSA’s efforts to regulate professions and activities supporting the insurance sector in accordance with clear professional and technical standards. It is intended to enhance the reliability of insurance assessment and loss estimation services and improve the quality of technical reports used by insurance and reinsurance companies when assessing risks and claims and making decisions on insurance coverage and compensation.

The regulation establishes an integrated framework for conducting insurance risk assessments before insurance contracts are concluded and for estimating losses arising from insured risks. It sets out the technical and professional requirements that licensed entities must meet, as well as rules governing their activities and obligations towards insurance companies and policyholders.

Under the regulation, entities must obtain prior authorisation from the FSA before conducting insurance loss assessment and estimation activities. Insurance companies are also prohibited from dealing with unlicensed entities.

The licensing requirements cover legal, financial and professional conditions, as well as competency and experience requirements for personnel engaged in the activity. These measures are intended to improve the quality and reliability of assessment and estimation services and ensure that they are carried out by suitably qualified professionals.

The regulation also governs the duration and renewal of licences and sets out the obligations of licensed entities. These include compliance with professional standards and the principles of integrity, independence and impartiality, as well as requirements relating to the confidentiality of data and information.

In addition, it establishes procedures for assessing risks and estimating insurance losses and defines the professional duties of licensed entities throughout the various stages of the process. These include preparing accurate and comprehensive technical reports based on recognised professional standards, reviewing claims, and verifying the causes and extent of losses.

The regulation also introduces controls aimed at mitigating conflicts of interest and ensuring that assessments are conducted objectively and impartially. The measures are intended to strengthen the independence and reliability of loss assessment activities while protecting the interests of policyholders, insurers and other parties involved in the claims process.