Regulating Actuarial Services Firms in Oman: A New Era of Oversight

Overview

The Financial Services Authority (“FSA”) recently issued Decision No. E/6/2026 (“Regulation”) promulgating the Regulation Governing Actuarial Services Offices, establishing, for the first time in Oman, a dedicated licensing and supervisory framework for actuarial service providers.

This Regulation reflects the FSA’s continued efforts to strengthen the regulatory landscape of the insurance sector and enhance professional standards across financial services, in line with its broader mandate to ensure market stability and transparency.

Background

Actuarial services play a central role in the insurance sector, supporting risk modelling, pricing, reserving, and financial forecasting. As Oman continues to develop its insurance regulatory framework, the introduction of a standalone regulation for actuarial offices marks a significant step towards aligning with international best practice and enhancing reliance on technical expertise within the market. The decision further provides existing actuarial firms with a transitional period of one year to align their operations with the requirements of the new regulation, facilitating a structured and seamless shift towards full compliance with the new regulatory framework.

Key Features

1. Licensing

The regulation introduces a licensing regime for actuarial services offices. No entity may provide actuarial services in Oman without obtaining prior approval from the FSA. Each firm making an application for registration must have at least one qualified actuary. In addition, applicants must meet prescribed criteria such as demonstrating appropriate professional qualifications, ensuring the presence of qualified actuaries approved by the FSA and satisfying organisational and governance requirements.

The license of the actuarial firm is valid for 3 years from date of licensing and may be renewed for similar period upon request, made at least 30 days prior to expiry date.

2. Professional Qualifications

The Regulation imposes the requirement of internationally recognised actuarial qualifications, requiring actuaries to hold qualifications that are acceptable to the FSA. This measure is intended to ensure consistency in actuarial methodologies, reliability of actuarial outputs, and the alignment with global actuarial practices.

3. Scope of Permitted Activities

Licensed actuarial offices are authorised to provide a range of services, including the following:

1. Actuarial valuations and reporting;
2. Risk assessment and financial modelling;
3. Determination of technical provisions;
4. Pricing and product analysis; and
5. Advisory services to insurance and takaful operators.

These services underpin financial soundness and regulatory compliance across the insurance sector.

4. Limitations for licensed firms

An authorized actuarial firm can provide actuarial services to no more than 5 companies during one financial year.

The authorized actuarial firm must not assign or subcontract its services to any other entity, to provide the actuarial services that were assigned to it.

5. Governance and Compliance Obligations

The Regulation imposes ongoing obligations on licensed firms, including maintaining internal controls and professional standards, ensuring independence and objectivity in actuarial work, retaining adequate records and documentation, and complying with reporting requirements prescribed by the FSA. The FSA is empowered to conduct inspections and request information to ensure compliance.

The authorized actuarial firm has a duty under the regulations to report to the Authority if the insurer is not allowing them to perform their duty, or if they find that insurer’s underwriting policy will jeopardise the financial position or if the insurer is not apply the provisions contained in the applicable laws relating to the actuarial aspects.

This reflects a stricter supervisory approach to professional service providers operating within the insurance ecosystem.

6. Key Takeaways for Clients

1. Actuarial firms: must assess current structure and qualifications to ensure compliance with the new licensing regime.
2. Insurance and takaful companies: review existing arrangements and ensure engagement with FSA for the approved actuarial providers only.
3. New market entrants: benefit from a clearer regulatory pathway, albeit subject to stringent qualification and governance requirements.

Conclusion

The introduction of this Regulation represents a material enhancement of Oman’s insurance regulatory framework, reinforcing the importance of actuarial discipline in safeguarding financial stability.

The issuance of the Regulation represents a notable development in Oman’s insurance regulatory landscape by formalising the licensing and supervision of actuarial services offices, the FSA aims to enhance the quality, consistency, and reliability of actuarial practices, thereby supporting the stability and transparency of the insurance sector.