Oman’s insurance sector contributes 1.63 per cent of GDP

Oman insurance sector contributed 1.63 per cent of the Sultanate’s gross domestic product (GDP) in 2017,  according to the Insurance Market Review 2017  issued by CMA.

Highlighting the key events of the sector during FY 2017, the 14th edition of the Insurance Market Review covers indicators such as premiums, indemnities, number of policies, retention ratios, losses and financial indices of insurers, and their operational performances during the year.

Gross written premiums have increased by 0.3 per cent to reach RO451.57mn  at the end of 2017, compared to RO450.24mn at the end of the previous year. The number of policies issued by insurers was 1.72 million policies, a 4 per cent increase compared to 2016 .

Total paid indemnities have increased by 14 per cent in 2017 to RO304.98mn. Additionally, Takaful insurance premiums increased by 9 per cent to RO45.76mn. Takaful comprises 10 per cent of the gross direct premiums in 2017 and 19 per cent of total paid indemnities. Insurance brokers collected 27 per cent of gross premiums, according to the report.

Average growth of insurance premiums in the last five years was 5.8 per cent, with motor insurance comprising 34 per cent of gross premiums, while health insurance reached 30 per cent of gross written premiums.

On the financial position of insurance companies (general and life) the indices indicate the total capital of insurance companies was OMR248.46 million in 2017, a 16 per cent increase compared to 2016. The total assets of insurance companies increased in 2017 by 22 per cent to RO1.048bn. The investments of insurance companies were RO581.32mn, including the investments of national and foreign insurers. Also, the retention ratio of insurers increased to 57.46 per cent.

Omanisation in the sector 
The data suggests the number of employees in the insurance sector was 2,914 at the end of 2017, including 1,930 Omanis in various roles with insurance companies and brokers, at 66 per cent. The ratio of Omanis in national insurance companies was 57 per cent of Omani employees working for the sector, while the ratio of Omanisation in foreign insurance companies was about 12 per cent of all employees in the insurance sector.
The report concluded with general statistics about the insurance sector for the period 2012-2016. The key indices of the insurance market in the five years, according to the audited financial statements, suggest growth in direct premiums, indemnities and number of policies by 5.8 per cent, 9.1 per cent and 9.6 per cent, consecutively.