Oman: Takaful outpaces conventional insurance in 2019
Source: Middle East Insurance Review | Jun 2020
Takaful business in Oman soared by 20% to about OMR64m ($166m) in contributions in 2019, compared to 2018. The figure represents a 13.2% share of the total insurance portfolio.
This pace of growth is faster than the 5% posted by the overall insurance sector in the sultanate last year. Overall, gross direct premiums reached OMR486.5m in 2019 compared to 2018, according to data compiled from audited financial statements of insurers in the sultanate.
This overall growth in 2019 was faster than the average annual growth of 4% over the past five years, according to a report by Times of Oman.
Direct gross premiums of general insurance increased by 5% to OMR425.8m in 2019 compared to 2018. The general insurance segment’s share of the overall market was 87.5%.
Life business increased by 2% in terms of gross direct premiums to OMR60.7m in 2019 compared to 2018, accounting for a share of 12.5% of the total insurance portfolio.
The retention ratio in the insurance sector in 2019 was about 60.5% compared to 58.7% in 2018.
Insurance companies paid OMR324.5m in claims in 2019. The figure represents a fall of 16% compared to 2018.
The number of insurers licensed to carry out insurance business is 20, including Oman Re. There were 35 licensed brokers at the end of 2019 and more that 145 insurance agencies in the wilayas and governorates of the sultanate. M
OMR1 = $2.60