Oman: Insurance industry wants disaster insurance to be mandatory for properties
Source: Middle East Insurance Review | Oct 2022
Discussions and consultations are being held between the insurance sector and the insurance authorities in Oman to find an appropriate mechanism to implement a mandatory insurance system to cover natural disasters for fixed properties, according to industry sources.
The Sultanate is exposed to frequent tropical cyclones, which cause losses to homes, farms and other properties.
Industry sources told Oman Daily that insurance companies suffer huge losses as a result of recent hurricanes in respect of which they settled heavy compensation claims.
For instance, Cyclone Shaheen in October 2021 led to claim payouts of around OMR62m ($161m). Cyclone Shaheen was the most intense North Indian Ocean tropical cyclone on record, surpassing the old record set by the 1999 Odisha cyclone. M