MUSCAT: The Financial Services Authority on Wednesday said it is “closely monitoring” a news circulated on social media regarding the alleged increase in the minimum premium prices of vehicle insurance by some insurance companies in Oman.

“FSA continuously monitors vehicle insurance pricing and confirms no approval has been granted to raise the minimum price levels. The Authority remains committed to maintaining price stability within appropriate and safe limits,” a statement issued by FSA said.

“The FSA upholds the principle of a free market, where insurance pricing is determined by the dynamics of supply and demand, the portfolio performance for each and every company, and profitability level of these portfolios. The fair competition between insurance is sufficient to determine the fair insurance prices, and the insurance companies will change the tariff only after informing the Authority along with appropriate justifications,” the statement added.