Insurance

With participants showing strong growth in a highly competitive market, the sultanate’s insurance sector is experiencing a period of both vertical and horizontal expansion. Stronger regulatory requirements on solvency and governance are also on the way, while a major new element, Islamic insurance – takaful – is also being added to the mix. While the market penetration rate remains low compared to more established markets elsewhere in the region and the world, the sector has seen consistent growth in recent years, with gross premiums up 12.2% between 2010 and 2011. Indeed, the sector is now entering a period of change and future consolidation is expected, with plenty of opportunities for international investors to become involved. Rising per capita income, GDP growth on the back of high energy prices and a changing social profile are all contributing to new approaches and attitudes towards insurance, which are likely to bring about significant sector growth in the years ahead.