Insurance firms’ claims rise by 36%

MUSCAT: Unaudited preliminary indications for the insurance sector indicate that claims paid by insurance firms rose 36 per cent in the first quarter of this year to reach OMR39 million, compared to the same period last year.

The data also shows a rise of total direct premiums of the sector in the first quarter of 2015 by 6 per cent to OMR121.25 million, compared to the same period last year.

Most insurance products witnessed a rise in total premiums during the same period in varying proportions, with health insurance on the top, rising 28 per cent, as compared to the same period last year. Health insurance amounted to 22 per cent of the to- tal direct premiums for the sector, a rise of 4 per cent in comparison to 2014. Liability insurance rose 18 per cent, collective life insurance 16 per cent, transportation 7 per cent, and third party vehicle insurance by 3 per cent, while other products saw a decrease in varying degrees like property insurance.

Growth rate

Growth rates achieved by the sector in total direct insurance premiums for the first quarter of 2015 reflected positively to reach OMR61.665 million at the end of the quarter, up 14 per cent from the same period last year. Direct premiums are the total amount of an insurer’s written premiums without any allowance for premiums ceded to re-insurers.

The claims paid by insurance companies to cover the risks undergone by policyholders during the first three months of 2015 amounted to OMR38.76 million, up 36 per cent, as compared to the same period last year.

Data indicates that when comparing the total direct premiums and net direct premiums, the retention rate of insurance companies rose 4 per cent during the first quarter to 51 per cent as compared to 47 per cent.

Retention rates in property, engineering, and transport insurance branch were the lowest, compared to other branches, reaching 9 per cent, 23 per cent and 21 per cent, respectively, as a result of re-insuring the bulk of these risks.

Vehicle, health, and life insurance contributed the largest share in retention rate reaching 84 per cent, 59 per cent, and 41 per cent, respectively, while retention rates in property, transport and engineering products dropped 9.8 per cent, 14.4 per cent and 17 per cent, respectively.

HAVE YOUR SAY

Send us your comments at facebook.com/timesofoman blog.timesofoman.com haveyoursay@timesofoman.com