17pc growth in health insurance from Jan to Sept 2017

Unaudited financial data issued by the Department of Audit and Financial Analysis at Capital Market Authority (CMA) indicates the insurance sector in the Sultanate has achieved continued growth in gross written premiums during the three quarters of 2017 compared to the same period in 2016 with varying ratios.

Direct gross insurance premiums during the three quarters of 2017 have increased by 0.3 per cent compared to the first three quarters of 2016 by RO 931,000 to RO 358.16 million compared to RO 357.23 million during the same period in 2016.

Although the written premiums have generally increased during the period, most insurance segments have witnessed varying declines with the exception of health insurance and group life insurance which recorded an increase at 17 per cent and 25 per cent consecutively. The decline of most insurance branches is attributed to the cost of rationing policies as was evident in engineering insurance which witnessed a reduction at 3 per cent compared to the same term in the past year. This branch has witnessed in 2016 a decrease according to the audited insurance indices at 25 per cent as well as transport, property, motor, individual life and liability at 19 per cent, 7 per cent, 8 per cent, 21 per cent and 3 per cent consecutively while other branches have decreased by 6 per cent.

The indices show that direct premiums of motor insurance products accounts for 33 per cent of the gross insurance premiums compared to health insurance which represents 31 per cent. Motor insurance products still maintain the leading position with regard to the volume of representation in the total insurance market. However, health insurance has contributed to enhanced representation approaching the level of motor insurance.

The audited data in 2016 suggest the average growth of health insurance in the Sultanate in the past five years was 34 per cent and is expected to witness further growth due to the Government’s policy to implement compulsory health insurance for all the employees of the private sector.

WRITTEN PREMIUMS The slight increase achieved by the sector in gross direct written premiums in the three quarters of 2017 has reflected positively on the gross net direct premiums after reinsurance processes. Gross net direct premiums have increased during the three quarters of 2017 by 1 per cent compared to the same period in the previous year.

Properties and engineering insurance have achieved the highest ratio in premiums at 19 per cent and 18 per cent consecutively compared to the same period in 2016 while the