Insurance market contribution grows 1.63pc

MUSCAT: The audited financial statements for 2017 suggest the insurance sector contributed 1.63 per cent of GPD.
Gross written premiums have increased by 0.3 per cent to reach RO 451.57 million at the end of 2017 compared to RO 450.24 million at the end of the previous year.
The number of policies issued by insurers was 1.72 million, a 4 per cent increase compared to 2016.
The Insurance Market Review 2017 ‘14th Edition’ issued by the Capital Market Authority (CMA) highlighted the key facts of the insurance sector in 2017 covering key indicators, such as premiums, indemnities, number of policies, retention ratios, losses and financial indices of insurers and their operational performance in the year.
Average growth of insurance premiums in the last five years was 5.8 per cent with motor insurance comprising 34 per cent of the gross premiums and health insurance 30 per cent of the gross written premiums.
Total paid indemnities have increased by 14 per cent in 2017 to RO 304.98 million. Takaful insurance premiums have increased by 9 per cent to RO 45.76 million.
Takaful comprises 10 per cent of the gross direct premiums in 2017 and 19 per cent of total paid indemnities.
Insurance brokers collected 27 per cent of gross premiums.
On the financial position of insurance companies (general and life), the indices indicate the total capital of insurance companies was RO 248.46 million in 2017, a 16 per cent increase compared to 2016.
The total assets of insurance companies increased in 2017 by 22 per cent to RO 1.048 billion.
The investments of insurance companies were RO 581.32 million including investments of national and foreign insurers.
Retention ratio of insurers has increased to 57.46 per cent.
The report also highlighted the Takaful business covering areas, such as gross written premiums of Takaful companies, total paid indemnities and number of issued policies. — ONA