Oman’s Insurance Sector Thrives with 11.9% Growth in H1 2023, Reaching OMR 332.9 Million
The insurance sector in the Sultanate of Oman has demonstrated remarkable resilience and robust growth, posting an impressive 11.9 percent increase in the first half of 2023 compared to the same period in the previous year. The unaudited financial statements released by the Capital Market Authority (CMA) highlight the sector’s vitality, as it continues to play a pivotal role in safeguarding individuals and businesses from risks.
Total Written Premiums Soar
During the first half of 2023, the insurance sector recorded total written insurance premiums amounting to approximately OMR 332.9 million. Notably, the majority of these premiums, a substantial 85.7 percent, were generated by national insurance companies, reflecting the trust and preference of policyholders for local providers. The premiums of national companies surged to approximately OMR 285 million in H1 2023, marking significant growth compared to OMR 250 million in the same period in 2022. Foreign insurance companies contributed approximately OMR 47.8 million to the sector’s premiums during this period.
Takaful Insurance on the Rise
Takaful insurance companies, a distinctive segment of the market, constituted 11 percent of the total insurance premiums, with a value of OMR 37 million. This segment witnessed a commendable 4.3 percent growth in H1 2023 compared to the previous year, highlighting the increasing popularity of ethical and Sharia-compliant insurance options.
Compensation Reflects Risk Management
In a testament to the sector’s commitment to policyholders, the data revealed a 17 percent increase in the compensation paid by insurance companies to mitigate the material effects of policyholders’ exposure to risks. This amounted to approximately OMR 115 million, with Takaful insurance contributing over OMR 9.6 million to this sum. Notably, the net compensation decreased by 6 percent in H1 2023 compared to the same period in 2022.
The underwriting results of insurance companies in H1 2023 showcased promising developments across various segments. Direct insurance premiums exceeded OMR 160 million, marking a 4.6 percent increase from OMR 153 million in H1 2022. Healthcare insurance recorded exceptional growth, surging by 22.6 percent to reach OMR 135 million in H1 2023, compared to OMR 110 million in the previous year. The life insurance segment also exhibited significant growth, with a 10.4 percent increase in premiums, totaling over OMR 37 million in H1 2023.
Net Premiums and Operational Results
The value of net insurance premiums experienced a substantial 14.1 percent surge in H1 2023, reaching over OMR 193 million compared to approximately OMR 169 million in H1 2022. This increase was attributed to heightened net premiums in multiple insurance segments. Individual life insurance witnessed the most substantial growth among all segments, recording a remarkable 69.6 percent increase, totaling OMR 7.7 million. Property insurance also saw substantial growth, surging by 37.3 percent to approximately OMR 8.7 million. The health insurance segment maintained its prominence, boasting the highest value in net insurance premiums at around OMR 105 million, with an 18.4 percent increase.
Operational results highlighted by the CMA data demonstrated the sector’s commitment to efficiency and quality service. The value of earned premiums, net compensation, and administrative and general expenses increased by 10.54 percent, 17.08 percent, and 6.01 percent, respectively.
An Insurance Sector Poised for Continued Growth
Oman’s insurance sector has showcased impressive growth in the first half of 2023, underlining its resilience and commitment to policyholders. With increasing demand for insurance products across various segments and a strong emphasis on operational efficiency, the sector is poised for continued expansion and innovation in the ever-evolving landscape of risk management and financial security.
Subscribe to BNN Breaking
Sign up for our daily newsletter covering global breaking news around the world.