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Oman: Sector expected to grow more than 10% this year - S&P

Source: Middle East Insurance Review | Apr 2018

Oman’s insurance sector is expected to record the strongest y-o-y growth in 2018 of more than 10% due to the introduction of new compulsory medical cover for expatriates, according to S&P.
 
   The ratings agency said the market in Oman, similar to those in Kuwait and Qatar, will remain profitable but growth is subject to mounting competitive pressure in the absence of risk-based regulations and strictly applied actuarial pricing that could improve underwriting discipline.
 
   Medical insurance in Oman has been unprofitable at the technical level in the past two years with a combined ratio of over 100%. The newly introduced medical cover for expatriates, if not priced appropriately, could further impinge on overall profitability in the sector, S&P warned. 
 
   On other fronts, Oman has taken steps toward implementing higher capital requirements, stronger internal controls, and better governance arrangements. For example, in 2014, the insurance law was amended to require local insurers to double their minimum capital to OMR10 million (US$26 million).  M 
 
OMR1 = US$2.60
 
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