Insurance sector contributes 1.2% to Oman’s GDP

Muscat: The insurance sector in the Sultanate of Oman is one of the fastest growing sectors as a result of the developments it witnessed during the previous period. As the growth rate in the sector for insurance premiums in 2022 was about 13 percent.

His Excellency Abdullah bin Salem Al Salmi, CEO of the Capital Market Authority, said: The percentage of the insurance sector’s contribution to the gross domestic product of the Sultanate of Oman has reached 1.23 percent, and the total direct premiums for the insurance sector increased by 12.8 percent, to reach RO 541.3 million by the end of the year 2022, compared to OMR 479.9 million at the end of 2021.

In his introductory speech to the annual statistical book on insurance market indicators in the Sultanate of Oman for the year 2022, he added: “Insurance premium data indicate that health insurance accounted for 35 percent of the total direct written premiums, while the vehicle insurance branch in its two parts: comprehensive insurance and third party insurance accounted for It is 19.68 percent of the total volume of premiums.

He explained that the audited financial statements for the year 2022 indicate that the complementary insurance premiums increased by 7.7 percent, as the total direct premiums for Takaful insurance amounted to OMR 76.3 million, as the Takaful insurance rate accounted for 14 percent of the total direct premiums for the year 2022 and 13 percent of the total paid compensation.

During the same year, premiums collected from insurance broker companies amounted to 46.8 percent. The capital of insurance companies amounted to about 297.90 million riyals in 2022 AD, compared to 274.66 million riyals in 2021, an increase of 8.46 percent, as the capital of national companies amounted to about 145.69 million riyals in 2022 AD, compared to 125.36 million riyals in 2021, i.e. a percentage. An increase of 16.22 percent.

The capital of foreign insurance companies amounted to about 152.20 million riyals in 2022, compared to 149.31 million riyals in 2021, achieving an increase of 1.94 percent.

The audited financial statements of insurance companies showed an increase in the total assets of insurance companies in the year 2022 by 11.6 percent, to reach about one billion and 336.1 million Omani riyals, of which 875 million riyals related to general insurance, 228 million riyals related to life insurance, and 233.10 million riyals related to health insurance. While the total assets for the year 2021 amounted to about 197.6 billion riyals, of which 767.64 million riyals related to general insurance, 219.97 million riyals related to life family insurance, and 209.95 million riyals related to health insurance.

The total investments of insurance companies at the end of the year 2022 amounted to about 831 million and 920 thousand Omani riyals, of which 563 million and 860 thousand Omani riyals were the investments of national insurance companies, and 268 million and 60 thousand Omani riyals were the investments of foreign insurance companies, compared to the end of the year 2021, which amounted to about 681 million and 960. One thousand Omani riyals, of which 426 million and 460 thousand riyals are investments of national insurance companies, and 255 million and 500 thousand riyals are investments of foreign insurance companies.

The total direct premiums of Takaful insurance companies operating in the Sultanate of Oman increased by 7.7 percent, to reach about OMR 76,256,000 in the year 2022 , compared to OMR 70,779,000 in the year 2021, which represents 14 percent of the total direct premiums of insurance companies. Insurance.

The data indicates that the number of workers in the sector reached 3 thousand and 176 workers by the end of the year 2022, of whom two thousand and 648 Omani workers are distributed in various administrative and technical positions in companies, brokers and insurance agents, and they constitute a percentage of 83.4 percent of the number of workers in the sector. In national and foreign insurance companies, it amounted to 83.7 percent and 84.8 percent, respectively, while that percentage reached about 93.6 percent in insurance agents. The audited financial statements during the period from 2018 to 2022 indicate a growth of direct premiums by 3.8 percent, paid compensations by 1.9 percent, and an increase in the number of issued documents by 4 percent.