The Sultanate of Oman has introduced mandatory natural catastrophe coverage within the Unified Motor Insurance Policy, the first such initiative in the Gulf Cooperation Council (GCC) region, developed through close collaboration with Oman Re, Gallagher Re, and the Oman Insurance Association.
Driven by the Financial Services Authority, the new framework became effective on February 19, 2026, following a one-month grace period for insurance companies to align their operations.
The scheme introduces automatic protection for policyholders against natural disasters and climate event losses under third-party motor policies.
It has been designed to improve customer protection, clarify compensation mechanisms, introduce defined claims timelines and support long-term market sustainability through a structured and balanced risk-sharing approach.
“The scheme has been shaped through extensive technical work, actuarial analysis and market consultation to ensure it is operationally sound, transparent and aligned with international best practice,” Chems-Eddine Kassali, Regional Director, Middle East and Africa (ex South Africa), explained.
Adding: “Gallagher Re is proud to have supported the development of this landmark initiative alongside Oman Re and key market stakeholders. Our role included contributing to the technical design of the scheme, facilitating catastrophe modelling and pricing discussions, supporting risk-sharing and reinsurance structuring, and engaging with international markets to help ensure long-term sustainability and alignment with global standards.”
The launch of this framework reflects Oman’s proactive regulatory approach and its commitment to establishing a strong protection system for individuals, businesses and the broader economy in the face of growing climate risks.
Kassali stated: “This milestone demonstrates the value of strong collaboration between regulators, insurers, reinsurers and advisors in delivering meaningful, system-wide solutions. It also highlights how well-designed public-private partnerships can enhance protection for policyholders while maintaining market stability and confidence.
“We believe that this initiative provides a strong template for other markets across the Gulf region and beyond as they look to address evolving climate and catastrophe risks through scalable, sustainable insurance solutions. Gallagher Re remains committed to supporting governments, regulators and (re)insurance industry partners in developing similar frameworks and strengthening resilience through innovative risk transfer and reinsurance structures.”
He concluded: “We congratulate all stakeholders involved in bringing this pioneering scheme to life and look forward to continuing our collaboration in advancing resilient insurance ecosystems across the Gulf region.”
