Insurance premiums reach RO358mn in first nine months

Gross direct premiums during the first three quarters of this year increased 0.3 per cent to RO358.16mn from RO357.23mn in the same period a year ago, according to a report released by the Capital Market Authority (CMA).

However, most insurance segments witnessed decreases in written premiums this year except health and group life insurance. Health insurance premiums recorded a 17 per cent growth, while group life insurance premiums rose 25 per cent during the first nine months of 2017.

The decrease in most insurance categories was attributed to the expenses rationing policies and this was evident in engineering insurance which witnessed a reduction of three per cent, the CMA insurance market report said.

The report showed that motor insurance still maintains a leading position in Oman’s insurance market. Direct premiums in motor insurance segment represents 33 per cent of the gross insurance premiums, while health insurance represents 31 per cent of the total.

With its rising contribution to Oman’s overall insurance market, health insurance significantly enhanced representation approaching to the level of motor insurance, the report noted.

The average growth of health insurance in Oman in the past five years was 34 per cent and is expected to witness further growth due to the government’s policy to implement compulsory health insurance for all the employees of the private sector.

According to the CMA statistics, National Life and General Insurance Co remains the largest insurer in Oman with a share in direct premiums at RO90mn (25 per cent) in the first nine months of 2017. This was followed by Dhofar Insurance with a share of ten per cent, Oman United Insurance at nine per cent share and Axa Insurance at eight per cent.