Dr. Khalid Al Amri Reviews the Omani  Insurance Market

The Capital Market Authority hosted today a workshop  that reviewed study on the Omani insurance market  during the period 2000-2015 presented by Dr. Khalid Said Al Amri, Associate Professor at Sultan Qaboos University on the insurance market in Oman during specific period and its characteristics. He pointed out to certain matters to be addressed to cope with the market development and increased demand for insurance products.

The workshop  was attended by HE Sheikh Abdullah Salim Al Salmi, Executive President of CMA and a number of officials of CMA and insurance companies and brokers.

The study is one the research projects funded by  a grant from His Majesty Sultan Qaboos bin Said.

The researcher focused on the developments and prospects of insurance industry in Oman, the application of institutional risk management in insurance companies, corporate governance in insurance companies and the measurement of interaction between the insurance companies in paying attention to human resources and setting up strategies for employees development in insurance companies.

The presentation covered  the growth of insurance premiums during the period 2000-2015 and how life insurance products which include health insurance have grown remarkably compared to general insurance.

The author reviewed the analysis of the impact of natural calamities on the insurance sector both general and life an showed that  the performance of the sector before and after the weather conditions in 2007 (Jonu) and concluded that the sector was not greatly impacted by the conditions and increased claims.

The study measured the level of competition in the Omani insurance sector and pointed out that the legislature has regulated the distribution of shares in the market between the insurers focusing on concentration of acquisition and said that the biggest five insurance companies had 70%  market share in 2004 and now the market has  expanded and the share decreased to 58% in 2015 thanks to well -developed legislations.

On the retention ratios the researcher said  they are high and require reducing reinsurance processed abroad and enhancing retention in the local market.

The study included analysis of the economic indicators including the contribution of the sector in the GDP and per capita expenditure on insurance products which is RO 100 per annum beside comparison between the Omani and GCC insurance markets.

The researcher emphasized the importance of enhancing risk management systems in insurance companies  and setting up  risk management strategies to manage the risk the  insurers are exposed to in view of economic volatility and financial crisis in the global markets especially the insurance companies are taking risks from their customers.

He pointed out that 20% of the insurance companies have human resources development strategies which is relatively poor and require further action.