Taking cover
High oil prices and improvements in the performance of non-oil activities in 2007 has helped the cause of the insurance industry in Oman

Total direct premiums of the general insurance sector in 2007 increased by 15.9 per cent over the previous year from RO118.15mn to RO136.96mn. Reports indicated that the national insurance companies share in the total direct premium stood at 81.9 per cent in 2007 compared to 82.9 per cent in 2006. The foreign insurance companies on the other hand increased their share from 17.1 per cent in 2006 to 18.1 per cent in 2007. To improve the services provided by insurance companies and to promote competition for better services and benefits the number of insurance companies was increased to 20 companies comprising 11 national companies and nine foreign insurance companies. The Capital Market Authority, the regulator of the insurance sector is making efforts to disseminate insurance awareness, to develop insurance services provided by insurance companies and to cater for the needs of all segments of the community such as vehicles insurance and bankassurance.

Motor vehicle insurance continues its dominance of the market with national companies earning over 50 per cent of their premium income from motor insurance in 2007. For foreign companies this figure is 44 per cent. As more vehicles come onto the roads, the premium income from the category is sure to grow in the coming years. Motor insurance is followed by properties, others and marine insurance. The CMA is going to introduce an Orange Cars System for the sector which would ease the procedures for Omani vehicles entering other Arab countries at border checkpoints and allow settlement of claims and indemnities related to traffic accidents outside Oman.

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