Insurance
From The Report: Oman 2016
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Regulatory changes primarily aimed at encouraging consolidation within the insurance sector have recently been introduced by the Omani authorities. Low penetration levels indicate significant room for growth in the sector, with the life segment widely regarded as the most promising area for expansion. Motor coverage still remains the largest insurance line in the sultanate by premium value, taking a 40% market share in 2014, and while the segment continues to see strong growth, competition has driven down premium levels. Elsewhere, the takaful (Islamic insurance) segment continues to expand since its launch in 2014, with some industry players hopeful that the segment could reach as much as 20% of the insurance market in the medium term, which would be roughly in line with other GCC markets. This chapter contains a viewpoint from Sheikh Abdullah bin Al Salmi, Executive President, Capital Market Authority.

Articles from this Chapter

Overview

Regulating risk: New rules aim at consolidation, as takaful segment takes off
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The insurance industry in Oman has been going through a period of change in recent years, alongside its continued expansion. The authorities have recently made regulatory alterations aimed primarily at encouraging consolidation in the somewhat crowded sector. Penetration levels are low by Western standards, leaving a great deal of room for growth in general and in the life segment in particular, though the sector’s contribution to GDP is comparatively high by regional standards. Health insurance…

Viewpoint

An important milestone: Sheikh Abdullah bin Al Salmi, Executive President, Capital Market Authority (CMA), on the evolving insurance sector
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Though insurance was employed in the years preceding 1970, the development of the insurance industry in Oman coincided with the comprehensive sustainable development led by His Majesty Sultan Qaboos bin Said Al Said. A component of the CMA’s mandate is to protect all market participants, ensuring, in the process, adherence to best standards and practices and the development of the sector. In pursuit of such a mandate, several major milestones have been passed over the years. One of the most important…

Analysis

Checking their list: New legislation requires insurers to become publicly traded firms
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In August 2014 amendments to Oman’s insurance law were passed under Royal Decree No. 39/2014. Changes include a doubling of capitalisation requirements for insurance companies – the second minimum capital increase in recent years – and an obligation to list on the local stock exchange, both of which will come into effect in 2017. Industry figures say that the changes will have a positive impact, although some players are calling for further changes to underpin industry stability. Capitalisation…