The insurance sector in Oman increases 13 per cent in total direct written insurance premiums, reaching RO 133 million during Q3 2022, compared to RO 118 million in the same period in 2021.
The latest unaudited financial statements for insurance companies issued by the Capital Market Authority indicated that the share of national companies accounted for the largest part of the volume of written premiums at a rate of 83 per cent, or about RO 111 million, compared to RO 99.4 million in the same period in 2021. The volume of written premiums until the end of last September amounted to more than RO 431 million.
The underwriting results of the insurance companies showed a discrepancy in the indicators of the value of the total insurance premiums written by sectors during the Q3 of 2021 and 2022, as insurance premiums for the liability sector increased by 19 per cent, insurance premiums for the vehicles (third party) increased by 21.1 per cent, and insurance premiums for engineering increased by 21.1 per cent. The highest percentage increase by 41 per cent, to reach approximately RO 6.7 million.
Whereas, insurance premiums for the transportation and property insurance sectors decreased by 16 per cent and 11 per cent, respectively.
According to the order of insurance product shares out of the total insurance portfolio, indicators show that health insurance products continued to lead at a rate of 36 per cent, followed by property insurance and vehicle insurance (third party) at rates of: 14 per cent and 11 per cent, respectively.
The data indicated an increase in the total net direct insurance premiums — which the insurance company maintains after deducting what is reinsured with reinsurers — for Q3 2022 by 14 per cent, compared to the same period in 2021.
This is due to the increase in net premiums in most insurance branches, as the net premiums of the (group) life insurance branch recorded the highest increase among all branches, by 53 per cent, to reach about RO 4.8 million, and the vehicle insurance branch (third party) increased by 23 per cent to reach about RO13.3 million.
On the other hand, the data on operating results for Q3 recorded a decrease in net commissions by 185 per cent, while the value of earned premiums, net compensation item, and general and administrative expenses item increased by 26 per cent, 28 per cent, and 14.7 per cent, respectively.
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