CMA Publishes Insurance Review 2014
Al Salmi: Takaful Insurance 6% of Gross Direct Premiums
The Capital Market Authority has published the 11th edition of Insurance Market Review 2014 an annual book on the performance of the insurance market containing the key indicators of the industry such as premiums, paid claims, insurance policies, retention rates and losses.
HE Abdullah Salim Al Salmi, Executive President of the Capital Market Authority said in an introductory note the sector has contributed 1.29% in the GDP according to the audited statements and the gross direct premiums increased by 10% to RO 396.5 million at the end of 2014 compared to RO 359.9 million at the end of the previous year. The data suggests the motor insurance comprised 40% of the gross premiums while health insurance accounted for 20% of the gross written premiums.
HE pointed out that Takaful insurance was introduced during 2014 with two national Takaful companies providing Takaful products. They had a 6% share of the gross direct premiums in 2014 and 4% of the total paid claims for the same year. Insurance brokers collected 38% of the gross direct premiums which is an indication that insurance brokers play an active role in the insurance industry.
The review shows that the capital of insurance companies was RO 141.5 million in 2014 compared to RO 129.3 million in 2013 increasing by 9%. Audited financial statements suggest an increase in the total assets of insurance companies in 2014 by 5% to reach RO 752 million compared to RO 714.2 million in 2013. Total investments of insurance companies at the end of 2014 were RO 467.5 million compared to RO 425.5 million in 2013.