Insurance premiums grow by 3.1 pc, compensations by 18 pc

MUSCAT: The unaudited financial statements for the insurance sector in the Sultanate point out that the gross insurance premiums during the first three quarters of 2016 grew by 3.1 per cent compared to the corresponding period in 2015. The gross insurance premiums grew by 10.6 million to hit RO 357.2 million compared to RO 346.6 million during the same period of 2015. The growth in the direct total insurance premiums during the first three quarters of 2016 reflected positively on the net earned premium; the premiums, which the insurance companies retain after deducting what is reinsured by reinsurers.
The data points out that the net collected premiums during the third quarter of 2016 grew by 4 per cent compared to the same period in 2015.
Despite the variance in the increase and decrease of the insurance premiums for the different insurance products, still the individual life insurance has recorded the biggest growth during the first three quarters of 2016 with 249.4 per cent compared to 12.5 per cent for the liability insurance, 9.4 per cent for health insurance, 7.3 per cent for auto insurance and 2.7 per cent for other insurances.
On the other hand, the group life insurance recorded the highest decline with 21.3 per cent followed by engineering insurance, property insurance, transport insurance and comprehensive auto insurance with 16.6 per cent, 12.2 per cent, 7.8 per cent and 4.9 per cent respectively.
The growth of the individual life insurance has positive reflection on the net earned premiums which grew by 218 per cent.
The life insurance business recorded the highest decline compared to other insurance businesses with 16 per cent. It was noted that the net premium for property insurance has recorded positive growth compared to the decline in the total premiums during the first three quarters of 2016.
The total premiums stood at 12.2 per cent compared to 4 per cent for the net premiums.
On the other hand, the other insurance business as part of the net premiums witnessed a decline although it has been positive at the total premium in 2016 as it constituted 2.7 per cent of the total premium and then went down to 4 per cent.
As for the operation results for the insurance companies during three quarters of 2016, the earned premium during the three quarters of 2006 stood at 9 per cent compared to 2015 where the total earned premiums stood at RO 178 million for 2016 compared to RO 163 million at the same period in 2015.
The net commissions by international reinsurers against re insuring part of the local insurance policies with them increased by 24 per cent in 2015.
The net compensation paid by the insurance companies increased to RO 124 million; a growth by 18 per cent. The commission and production costs increased by 22 per cent as of the third quarter of 2016, compared to the same period in 2015. — ONA