Insurance

Regulatory changes primarily aimed at encouraging consolidation within the insurance sector have recently been introduced by the Omani authorities. Low penetration levels indicate significant room for growth in the sector, with the life segment widely regarded as the most promising area for expansion. Motor coverage still remains the largest insurance line in the sultanate by premium value, taking a 40% market share in 2014, and while the segment continues to see strong growth, competition has driven down premium levels. Elsewhere, the takaful (Islamic insurance) segment continues to expand since its launch in 2014, with some industry players hopeful that the segment could reach as much as 20% of the insurance market in the medium term, which would be roughly in line with other GCC markets. This chapter contains a viewpoint from Sheikh Abdullah bin Al Salmi, Executive President, Capital Market Authority.