Insurance
From The Report: Oman 2015
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Oman’s insurance sector has continued to expand and was the second fastest-growing insurance market among GCC countries from 2007 to 2013. Gross written premiums reached $942.5m by year-end 2013, a 10.44% increase year-on-year from 2012, with the motor segment accounting for 41% of this total in both years. In August 2014 the Capital Market Authority (CMA), the industry regulator, introduced a number of amendments to Oman’s insurance law, requiring underwriters to raise their minimum paid-up capital to $25.9m – up from $12.9m previously – and to list a certain percentage of their shares on the Muscat Securities Market (MSM). Legislation passed by the Central Bank of Oman in recent years has paved the way for an increase in sharia-compliant products in the insurance market. This chapter contains an interview with Abduladheem Al Lawati, Chairman, Oman Insurance Association.

Articles from this Chapter

Overview

New regulations and rising awareness drive uptake and expansion
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The sultanate’s insurance industry has grown rapidly in recent years. According to data from the Capital Market Authority (CMA), which is charged with regulating the sector, during the period 2007-13 the sector posted a compound annual growth rate of 14% in terms of gross written premiums (GWPs). Oman was home to the second-fastest growing insurance sector in the GCC region during this period, after Saudi Arabia. The rapid uptake of insurance products in the local market over the past six years…

Interview

Ali Abduladheem Al Lawati, Chairman, Oman Insurance Association: Interview
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Interview:Ali Abduladheem Al Lawati From the private sector’s view, what are the most influential changes under the new insurance law from the Capital Market Authority (CMA)? ALI ABDULADHEEM AL LAWATI: There are a few important reforms to the insurance sector that the CMA has recently implemented. The first is increasing the minimum capital of insurance firms to OR10m ($25.9m). The implications of this change will vary from company to company. The bigger the capital, the greater the liability…

Analysis

Recent changes herald the beginning of a new phase
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A raft of new legislation and development plans put in place in 2014 have the potential to bring about a sea change in Oman’s insurance sector in the coming years. In August 2014 the Capital Market Authority (CMA), the industry regulator, introduced a number of amendments to Oman’s insurance law, requiring underwriters to raise their minimum paid-up capital to OR10m ($25.9m) – up from OR5m ($12.9m) previously – and to list a certain percentage of their shares on the Muscat Securities Market…

Analysis

The nascent Islamic insurance industry is poised to gain market share
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In 2013 and the first half of 2014, Oman’s takaful (Islamic insurance) segment moved to the forefront of the wider insurance industry. While sharia-compliant financial products have been allowed in the country since 2011, sharia-compliant underwriting was officially sanctioned only in 2013, and the first takaful firms did not begin the process of setting up shop until later that year. As of mid-September 2014 two takaful firms were operating in Oman, namely Al Madina Takaful, which opened its doors…