The insurance sector continued achieving its vital role in the national economy and providing safe investment environment for individuals and institutions against multiple risks and supporting the various investment activities in the productive sectors.
The latest audited data of the insurance sector indicates growth of the insurance sector by 7% annually since 2010 making it one of the promising sectors in the country.
The 17th edition of the insurance market index issued by the Capital |Market Authority covers the performance of the sector in the year 2020 by highlighting the key indices such as insurance premiums, paid indemnities, number of issued insurance policies, retention ratios and loss ratios for the different types of the insurance in addition to the financial indices of the insurance companies and their operational performance.
The financial data shows an increase in the investments of insurance companies in 2020 by 5.4% to reach RO 669 million. Gross underwritten insurance premiums were about RO 466 million. Health insurance products surpassed moto insurance with 34% market share compared to 24.3% for motor insurance. Takaful insurance continued the steady growth since its inception in 2012 at RO 65 million representing 14% of the total insurance portfolio.
Insurance companies paid RO 290 million as indemnities mainly for health insurance at RO 120 million representing 41.7% of the total indemnities followed by motor insurance (comprehensive and third party) at RO67.7 million representing 23.4%.
CMA urged the insurance companies to enhance their financial positions to be able to face the risks and to be ready for the expected growth opportunities in view of the Oman Vision 2040, accordingly their capital increased by 5.6% to RO 274.73 in 2020 compared to RO 260.10 million in 2019. Total returns from investments of insurance companies increased to RO 29 million in 2020 at 21.4% compared to RO 23.9 million in 2019.