Muscat – The COVID-19 pandemic and its subsequent implications had led to less people and drivers on the road. As a result, during the pandemic, insurance claims reduced significantly, up to 80 per cent compared to the pre-pendemic levels.

With this trend of lower claims, the insurance companies in Oman had also adjusted prices accordingly to reflect lower accidents and repair claims.

However, with Oman’s strong vaccination drive and the pandemic gradually being normalised, the country is opening up and citizens are resuming their pre-COVID-19 lifestyles, Al Ahlia Insurance Company said in a press statement.

Citing Google’s Mobility Report on Oman, Al Ahlia Insurance said that there is an increase in the number of people visiting grocery shops and pharmacies compared to 2019, prior to the global pandemic.

Furthermore, people are increasingly returning to offices and workplaces and mobility to such venues are forecasted to return to similar levels as 2019. These trends illustrate that consumer confidence and sentiment are improving and increased road activity is expected to occur, the statement said.

Al Ahlia Insurance said, since October 2021, it has observed that insurance claims are on the rise. In the last quarter of 2021, insurance claims reported have increased by 81 per cent compared to the first quarter of 2020, when COVID-19 was at its peak, the company said.

In fact, insurance claims reported in the last quarter of 2021 had already surpassed pre-COVID-19 levels, based on data from 2019, the insurer added.

Richard Byford, head of claims at Al Ahlia Insurance, said, “This is an alarming trend for insurers as we have not seen activity in key sectors, such as tourism, return to pre-COVID-19 levels yet. This means that insurance claims will only continue to increase as the world and Oman adapt to the ongoing implications of the pandemic.”

“The key challenge for the insurance industry is that market premiums have remained low, but we expect the industry to adjust as accident rates increase,” he added.

Since the start of the pandemic, many insurance companies have reduced premiums or offered discounts of up to 35 per cent to reflect the reduced accidents and repair claims. However, it is forecasted that this trend is now on a reverse.

Al Ahlia Insurance cautioned that it is critical to understand the coverage required before purchasing insurance.

Byford said, “We have seen consumers become increasingly price sensitive since the pandemic, so it is important to be cautious when purchasing insurance as intensive competition amongst insurers may mean some products don’t offer sufficient coverage.”