17 per cent growth in Takaful insurance in 2018

Takaful insurance registered a growth of 17 per cent in 2018, underscoring the steady uptake of Islamic sharia-based insurance products in the Sultanate.
According to the Capital Market Authority (CMA), gross direct premiums collected by Takaful companies operating in the Sultanate totalled RO 53.584 million in 2018, up from RO 45.762 million a year earlier, entailing a growth of 17 per cent.
This increase also contributed to the growth of the wider insurance industry in Oman during the year, said Abdullah bin Salim al Salmi, Executive President, CMA.
“The insurance sector witnessed rapid growth,” Al Salmi stated. The sector’s contribution to the national economy in 2018 was 1.52 per cent, the growth rate of gross insurance premiums was 11.36 per cent, written premiums were RO 463.395 million, number of issued insurance policies grew by 17 per cent, retention ratio of insurance companies was 58.7 per cent, and Takaful’s share in the total gross direct premiums of insurance companies was 12 per cent — a 17 per cent growth,” he added in the Authority’s 2018 Annual Report.
Significantly, General Takaful — which covers losses related to fire, theft or natural calamities — generated RO 46.914 million in gross premiums in 2018, up from RO 40.523 million a year earlier.
“General Takaful represents 16 per cent of the total general insurance of all the companies (conventional and Takaful) of the sector,” said the Authority in its Annual Report.
Gross direct premiums of Takaful companies for Family Takaful 27 per cent climbed to RO 6.670 million in 2018 compared to RO 5.238 million in 2017. Family Takaful represents 11 per cent of the total life insurance business of all the companies.
Policies issued across the General Takaful and Family Takaful types of coverage totalled around 180K last year, up from 108K in 2017, representing a hefty 65 per cent increased, according to the CMA.