The insurance industry in Oman is expected to reach $1.3 billion by 2024 at a compound annual growth rate (CAGR) of 2.7 percent from 2019, according to the GCC Insurance Industry report published by Alpen Capital.
The report indicates that the life insurance segment will grow at a CAGR of 6.1 percent and the general insurance segment will grow at a CAGR of 2.1 percent till 2024.
The substantial growth of the life insurance sector in Oman is expected due to the growing population in the country, which will also increase at a CAGR of 3.1 percent between 2019 and 2024. The growth of the general insurance sector, on the other hand, will be supported by the Omani government’s decision to make health insurance mandatory from 2020.
Earlier this year, a Standard and Poor Global rating report estimated that Oman’s insurance industry will grow up to 10 percent in 2019, making it one of the leading insurance industries among the GCC nations.
The report also reveals that the GCC insurance industry will reach $36.1 billion with a CAGR of 4.3 percent in 2024.
Sameena Ahmad, Managing Director at Alpen Capital told the media, “The GCC insurance industry which maintained a positive momentum over the years witnessed a slowdown in gross written premium (GWP) due to sluggish economic conditions during 2016 and 2018.
She added, “However, going forward, we anticipate the GCC insurance sector to grow at a moderate pace owing to an economic revival, growing population, strengthening regulatory reforms and continued implementation of mandatory insurance coverage. Infrastructure development, in line with upcoming mega-events, is expected to further aid growth in the segment.”