Health insurance overtakes motor segment in premiums

Muscat - 

Oman’s latest insurance market indicators showed that health insurance has first time overtaken motor segment in terms of market share in total insurance premiums.

Health insurance premiums topped other insurance products with 33 per cent share in total premiums, surpassing car insurance, which accounted for 31 per cent of total premiums, according to a report published Oman News Agency.

Insurance sector data showed an increase of RO12mn in total premiums by end of 2018, which is 3 per cent higher, compared to a year ago figures.

In contrast, the data showed that health insurance has been growing sharply in recent years, recording an annual growth rate of 30.5 per cent during the period from 2011 to 2018.

As the sultanate prepares to introduce mandatory health insurance cover for expatriate workers and visitors, the outlook for the growth of health insurance segment in Oman remains highly positive for next few years.

Currently, the number of private sector employees covered by health insurance umbrella is about 450,000 workers. In light of the implementation of mandatory health insurance scheme, the number of private sector employees to be covered is expected to reach more than 2mn, in addition to Omanis working in the private sector and visitors to the sultanate.

These trends show that Oman’s insurance industry is on the verge of a new expansion era that will witness entry of new insurers, investment entities and private health institutions and create jobs in the sultanate’s insurance sector.

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