1. Home
  2. Update
Author(s): Rumaitha Al Busaidi

Insurance as the Gulf’s early warning system

Source(s): Oman Daily Observer
Upload your content

...

This is how shocks become expensive. A storm is never only a storm. It swells electricity demand, strains water systems, delays transport, and drags public services into triage. Then information disorder arrives, speeding up certainty and slowing down trust. Add cyber disruption and the weak points line up. Compounding risk changes the bill, and it changes who receives it.

...

This month, Oman responded in a way that feels like a policy sentence with a hidden thesis. A few days ago, the Financial Services Authority approved automatic natural disaster and climatic event cover for motor insurance, including compulsory third party policies. In other words, what used to be optional has been folded into the baseline. Climate volatility has entered the definition of normal, and the cost of protection is being shared more widely across the market.

...

The agency looks like anticipating that adjustment. It looks like building standards that reduce losses, and regulatory clarity that reduces uncertainty. It looks like treating risk finance as part of competitiveness, protecting households from surprise cost migration, protecting firms from repeated shocks, and protecting public budgets from becoming the insurer of last resort by default. It also looks like talking about insurance in rooms that usually treat it as paperwork, because paperwork is where the future arrives first.

...

Explore further

Country and region Oman

Please note: Content is displayed as last posted by a PreventionWeb community member or editor. The views expressed therein are not necessarily those of UNDRR, PreventionWeb, or its sponsors. See our terms of use