Oman Insurance Report Q3 2012

Published : July 2012
No. of Pages : 64

Price:

The Oman Insurance Report considers the prospects for both life and non-life insurers in the country. As of May 2012, it is clear that conditions have been mixed for the major players in both segments. In the non-life segment, it appears that Al-Ahlia, the local subsidiary of RSA, has been gaining market share at the expense of the other companies. In the life segment, National Life & General Insurance, the main subsidiary of ONIC Holding has achieved substantial growth in Q112 relative to Q111: this has been thanks to greater sales of health insurance products, both in Oman and the UAE. Other companies have reported declining premiums – in some instances as a result of a deliberate policy to focus on profitability rather than growth. Meanwhile, earnings from investments – for most companies at least – appear to have improved dramatically in comparison with the very difficult period that was Q111.
Overall, though, nothing has happened to change BMI’s view that Oman will likely remain home to an insurance sector that is small, fragmented and highly competitive. Over recent years, premiums in both segments have been growing at low double-digit rates. Retention rates are low (often well below 50%).
Over the last year or so, motor-related claims have been unacceptably high. The insurers remain vulnerable to volatility in the underdeveloped financial markets of Oman and other countries in the region.
Taking the longer-term view, we do not see obvious catalysts for an increase in either non-life penetration or life density. Meanwhile, Oman’s insurance sector continues to compare unfavourably with its peers in other Gulf Cooperation Council (GCC) countries. Twenty-one companies, including 10 local groups, are competing for total premiums that are still less than US$700mn per annum. As is the case in the rest of the region, none of the local companies have the benefits of economies of scale, nor, with the clear exception of al-Ahlia which is an affiliate of global non-life major RSA Insurance, are any owned by major shareholders that have a clear competence in insurance. In most countries in the Middle East and North Africa (MENA), small local groups tend to focus exclusively on non-life lines (particularly the ‘basic’ areas such as motor and home/contents insurance). Oman is unusual in that most of the local groups are composite insurers. Even al-Ahlia offers group life products. The regulatory regime dates back only to 2004. To date, Oman’s insurance sector has not participated in the growth of takaful – a key factor in the expansion of the much larger industries in the UAE and Saudi Arabia: nevertheless, the Capital Markets Authority (CMA) has given an in-principle approval to the establishment of the Sultanate’s first shari’a-compliant insurance company.
A strength is that the market is clearly open to foreign players. Majors that are present include AXA Gulf, Chartis and, since October last year (through its purchase of Compagnie Libanaise d’Assurance), Zurich, as well as MetLife ALICO. LIC and New India are serving Indians who live and work in Oman. There are also offshoots of much smaller firms based in the UAE and Lebanon. For the time being, though, the exclusive distribution agreement signed in April 2012 between HSBC Middle East and Zurich does not extend to Oman.
Over the last quarter, BMI has made the following changes: 􀂃 The analysis incorporates BMI’s latest forecasts for Oman’s economy, including details in relation to auto sales and trends in the healthcare sector.
􀂃 The analysis incorporates comments on developments in Q112, most of which were published by the various insurance companies in May 2012.

Executive Summary ... 5
Table: Total Premiums 2009-2016 5
Key Insights And Key Risks . 5
SWOT Analysis . 7
Oman Insurance Industry SWOT . 7
Oman Political SWOT ... 8
Oman Economic SWOT . 8
Oman Business Environment SWOT .. 9
Life Sector . 10
Middle East Life Sector Overview ... 10
Table: Middle East And Africa Life Premiums, 2008-2016 (US$mn) 10
Oman Life Sector Update .. 12
Life Insurance Industry Forecast Scenario . 13
Table: Total Life Premiums 2009-2016 . 13
Growth Drivers And Risk Management Projections . 14
Population ... 14
Table: Insurance Key Drivers, Demographics 2009-2016 . 14
Non-Life Sector ... 16
Middle East Non-Life Sector Overview . 16
Table: Middle East And Africa Non-Life Premiums, 2008-2016 (US$mn)... 16
Oman Non-Life Sector Update 18
Non-Life Insurance Industry Forecast Scenario . 19
Table: Total Non-Life Premiums 2008-2016 . 19
Growth Drivers And Risk Management Projections . 20
Macroeconomic Outlook .. 20
Table: Oman’s Macroeconomic Data And Forecasts 2009-2016 22
Political Stability Outlook 23
Healthcare ... 24
Table: Number Of Health Centres In Oman By Region . 25
Table: Number And Type Of Health Institutions In Oman . 26
Table: Healthcare Reform Targets .. 27
Epidemiology . 35
Table: Oman''s Mortality Indicators, 2006 . 35
Table: Insurance Key Drivers, Disease Adjusted Life Years 2009-2016 36
Islamic Finance . 37
Insurance Risk/Reward Ratings . 38
Table: Oman’s Insurance Risk/Reward Ratings .. 38
Table: Middle East And Africa Insurance Risk/Reward Ratings .. 39
Competitive Landscape . 40
Competitive Landscape Analysis . 40
Major Players In Oman’s Insurance Sector 41
Table: Breakdown Of Gross Written Premiums By Line, 2008-2010 (OMRmn) 42
Table: Breakdown Of Net Written Premiums By Line, 2008-2010 (OMRmn) .. 42
Table: Breakdown Of Apparent Retention Ratios, 2008-2010 . 42
Table: Companies Ranked By Written Premiums, 2008-2009 (OMRmn) . 43
Company Profiles . 44
Local Company Profiles ... 44
Al-Ahlia Insurance Company/RSA Oman .. 44
Dhofar Insurance Company ... 45
National Life & General Insurance Company . 46
Oman United Insurance Company ... 47
Regional Company Profiles .. 48
Allianz 48
Arab Insurance Group (ARIG)... 50
Aviva .. 51
AXA 52
Chartis . 53
Demographic Outlook .. 55
Table: Oman''s Population By Age Group, 1990-2020 (''000) .. 56
Table: Oman''s Population By Age Group, 1990-2020 (% of total) 57
Table: Oman''s Key Population Ratios, 1990-2020 .. 58
Table: Oman''s Rural And Urban Population, 1990-2020 .. 58
BMI Methodology . 59
Insurance Risk/Reward Ratings . 61
Table: Insurance Risk/Reward Indicators And Rationale .. 62
Table: Weighting Of Indicators . 63Table: Total Premiums 2009-2016 . 5

Table: Middle East And Africa Life Premiums, 2008-2016 (US$mn) . 10

Table: Total Life Premiums 2009-2016 . 13

Table: Insurance Key Drivers, Demographics 2009-2016 . 14

Table: Middle East And Africa Non-Life Premiums, 2008-2016 (US$mn). 16

Table: Total Non-Life Premiums 2008-2016 . 19

Table: Oman''s Macroeconomic Data And Forecasts 2009-2016 . 22

Table: Number Of Health Centres In Oman By Region . 25

Table: Number And Type Of Health Institutions In Oman . 26

Table: Healthcare Reform Targets . 27

Table: Oman''s Mortality Indicators, 2006 . 35

Table: Insurance Key Drivers, Disease Adjusted Life Years 2009-2016 . 36

Table: Oman''s Insurance Risk/Reward Ratings . 38

Table: Middle East And Africa Insurance Risk/Reward Ratings . 39

Table: Breakdown Of Gross Written Premiums By Line, 2008-2010 (OMRmn) . 42

Table: Breakdown Of Net Written Premiums By Line, 2008-2010 (OMRmn) . 42

Table: Breakdown Of Apparent Retention Ratios, 2008-2010 . 42

Table: Companies Ranked By Written Premiums, 2008-2009 (OMRmn) . 43

Chartis . 53

Table: Oman''s Population By Age Group, 1990-2020 (''000) . 56

Table: Oman''s Population By Age Group, 1990-2020 (% of total) . 57

Table: Oman''s Key Population Ratios, 1990-2020 . 58

Table: Oman''s Rural And Urban Population, 1990-2020 . 58

Table: Insurance Risk/Reward Indicators And Rationale . 62

Table: Weighting Of Indicators . 63

Oman Insurance Report Q3 2012

Published By: Business Monitor International

Price:

How to Purchase

Purchase products from our site in 5 easy steps. Please follow the description given below to complete your purchase process.

Step 1:

Select the report title of your interest, and Click on Buy Now button next to the Price option.

Step 2:

You will arrive at the Purchase page, where you will be requested to Signup (New User) or Login (Registered User). Please note that in-keeping with the security check on the website, you must submit your full details to avoid any inconvenience arising from incorrectly entered data or counterfeit information.

Step 3:

After SignUp/Login, you will arrive at the Online Invoice Page. Select a Payment option via various methods: Debit Card / Credit Card / by Invoice. MarketReportOnline accepts Visa, MasterCard, American Express and all major credit cards. MarketReportOnline uses ICICI, HDFC, Citibank, American Express & Paypal as our Online Payment Gateway Partners. Clicking on a payment option will take you to the corresponding Payment Gateway page.

Step 4:

Once at the Payment Gateway, please complete the Payment Process to purchase your desired report.

Step 5:

Once you have successfully completed the purchase process, you will receive a confirmation email. You will then either be able to download your report immediately (in PDF Format) from the Account Login button, or the report will be emailed to you directly, depending upon the agreement we have with the publisher. For Orders that are deliverable via email and placed after working hours, the delivery of the reports will be made on the next business day. Please note, if you select purchase by invoice, you will receive your report only once the payment has been received. If you have any queries about how to order, please Contact Us .

sales@marketreportsonline.com + 1 888 391 5441

Using our subscription option, you get access to market research reports and industry data of Industry Profiles market as per your needs. Get the best of Industry Profiles research reports by utilizing your research budgets in an optimum way.
More about our Subscription option

Get Email alerts about market research reports from industries and publishers of your interest: