Muscat – The insurance sector in the sultanate is witnessing a rapid growth, marking a surge of 13% in insurance premiums in 2022.
Abdullah bin Salem al Salmi, executive president, Capital Market Authority, informed that the sector’s contribution to Oman’s gross domestic product (GDP) hit 1.23%. Direct premiums for the sector climbed by 12.8% to total RO541.3mn by the end of 2022, compared to RO479.9mn in 2021, he added.
In the annual statistical report on Oman’s insurance market in 2022, Salmi said health insurance was found to have constituted 35% of the total direct written premiums.
Vehicle insurance, encompassing comprehensive and third-party insurance, accounted for 19.68% of the total premium volume.
The audited financial reports from 2022 show that complementary insurance premiums saw a 7.7% increase. The total direct premiums for Takaful insurance hit RO76.3mn, contributing to 14% of the total direct premiums in 2022 and 13% of total paid compensation. Premiums garnered from insurance brokers represented 46.8% of the figure.
The capital of insurance companies rose to about RO297.9mn in 2022, up 8.46% from RO274.66mn in 2021. The capital of national companies alone saw a 16.22% increase from RO125.36mn in 2021 to about RO145.69mn in 2022.
Foreign insurance companies’ capital also increased by 1.94% to reach about RO152.2mn in 2022, up from RO149.31mn in 2021.
The total assets of insurance companies increased by 11.6% in 2022, reaching about RO1.336bn. This includes RO875mn related to general insurance, RO228mn for life insurance, and RO233.1mn for health insurance.
The total investments of insurance companies by the end of 2022 reached approximately RO831.92mn, with national insurance companies contributing RO563.86mn and foreign companies contributing RO268.06mn.
Takaful insurance companies saw their total direct premiums grow by 7.7% to reach RO76.26mn in 2022, up from RO70.78mn in 2021. This represents 14% of the total direct premiums of insurance companies.
The sector employs 3,176 workers as of the end of 2022, of which 2,648 are Omani workers occupying various administrative and technical positions. They constitute 83.4% of the total workforce, with national and foreign insurance companies employing 83.7% and 84.8% Omani staff respectively.
Over the five-year period from 2018 to 2022, the insurance sector saw direct premiums grow by 3.8%, paid compensations increase by 1.9%, and a 4% rise in the number of issued documents.