Oman: Takaful growth outperforms market's performance in 2021
Source: Middle East Insurance Review | Aug 2022
Gross direct contributions of takaful companies operating in Oman increased by 9.1% to OMR70.78m ($184m) in 2021 from OMR64.85m in 2020, compared with a 3% increase in the market’s direct premiums (OMR479.85m in 2021 vs OMR465.89m in 2020), according to data released by the Capital Market Authority (CMA) last month.
Health takaful contributions was the fastest growing branch of business as it witnessed a 16.7% growth rate from the past year, compared with 5.6% the market achieved in the same period. Growth rate for general takaful premiums was 6.6% against 0.7% for the whole market while family takaful direct contributions registered almost 11% increase versus 6.6%.
Takaful premiums represented approximately 15% of total premiums of the insurance sector in Oman, the CMA data showed. This ratio was 17% for general takaful and 24% for family takaful. Health takaful represented 8% of the total health insurance premiums of the overall insurance sector.
There are two takaful operators in Oman, Al Madina Takaful and Takaful Oman Insurance; both are listed on the Muscat Stock Exchange.
The following table summarises the gross contributions of the takaful market segment in 2021: