MUSCAT: Oman’s insurance companies have achieved a 3 per cent growth in gross direct premium at OMR134.7 million in the first quarter of 2017, against OMR131 million for the same period of last year.
The Omani insurance market continued recording reasonable growth rates compared to the economic situation despite the financial measures undertaken to mitigate the impact of the falling oil prices which had impact on the projects executed by the government and activities of the private sector, according to a press release from Capital Market Authority (CMA).
The increase in insurance premiums was spurred by positive turnout for individual life insurance products and health insurance and other insurance products, which increased by 15 per cent. Individual life insurance topped all insurance schemes with a 30 per cent growth in the first quarter, continuing a growth process started in 2016. This was due to option given to borrowers for insuring their bank loans.
Health insurance recorded good rates of growth in the first quarter up by 26 per cent compared to the same period of 2016, which is an indication of increased awareness of the benefits of health insurance and the endeavours of individuals and institutions to obtain better standards of health care.
On the other hand, engineering insurance products witnessed a 3 per cent growth in the first quarter of this year, over the previous year. This insurance is related to projects and the risks of contractors.
The unaudited statements of the first quarter shows fall in the transport and liability insurance, motor comprehensive insurance and life group insurance by 33 per cent, 31 per cent, 11 per cent, 9 per cent and 3 per cent, respectively. All such products were affected by the reduction in government expenditure.
