Insurance Market Contribution 1.63% of GDP
The audited financial statements for 2017 suggest the insurance sector contributed 1.63% of GPD. Gross written premiums have increased by 0.3% to reach RO 451.57 million at the end of 2017 compared to RO 450.24 million at the end of the previous year. The number of policies issued by insurers was 1.72 Million plicies a 4% increase compared to 2016 .
The Insurance Market Review 2017 “14th Edition” issued by CMA highlighted the key facts of the insurance sector in 2017 covering key indicator such as premiums, indemnities, number of policies, retention ratios, losses and financial indices of insurers and their operational performance in the year.
Average growth of insurance premiums in the last five years was 5.8% with motor insurance comprising 34% of the gross premiums and health insurance 30% of the gross written premiums.
Total paid indemnities have increased by 14% in 2017 to RO 304.98 million. Takaful insurance premiums have increased by 9% to RO 45.76 million. Takaful comprises 10% of the gross direct premiums in 2017 and 19% of total paid indemnities. Insurance brokers collected 27% of gross premiums.
On the financial position of insurance companies (general and life) the indices indicate the total capital of insurance companies was RO 248.46 million in 2017 a 16% increase compared to 2016. The total assets of insurance companies have increase in 2017 by 22% to RO 1.048 billion. The investments of insurance companies were RO 581.32 million including investments of national and foreign insurers. Retention ratio of insurers has increased to 57.46% .
The report also highlighted the Takaful business covering areas such as gross written premiums of Takaful companies, total paid indemnities and number of issued policies. The statistical data points out that retention ratio of Takaful companies was 54.45% in 2017, loss ratio increased to 392.82% at the end of 2017. Total investments of Takaful companies have increased by 1.89% in 2017 to RO 35.50 million.
On the Omanizaion the data suggests the number of employees of the insurance sector was 2914 at the end of 2017 including 1930 Omanis in the various roles with the insurance companies and brokers at 66%. The ratio of Omanis in national insurance companies was 57% of the Omani employees working for the sector while the ratio of Omanization in the foreign insurance companies was about 12% of the employees of the insurance sector.
The report concluded with general statistics of the insurance sector for the period 2012- 2016. The key indices of the insurance market in the five years according to the audited financial statements suggest growth in direct premiums, indemnities and number of polices by 5.8%, 9.1% and 9.6%consecutively.