Oman Insurance Report Q2 2016
BMI View: We have made some modest changes to our Q2 2016 report update for the insurance sector ofOman largely owing to currency movements. In 2015, the insurance sector saw a modest decline in growthand we are expecting 2016 to be a positive year, with stable growth around 7.7% in the insurance market.
0The Omani life insurance segment is small and we expect it to grow by around 12.5% in US dollar termswith premiums inching towardsUSD60mn. The more developed non-life segment will witness slowercomparative growth around 7.4% in 2016 to USD989mn. Demand will be led primarily by Oman's strongmacroeconomic performance and the substantial expatriate community, which will account for the majorityof life premiums written. The insurance market in Oman continues to present structural challenges,including a fragmented competitive landscape and low retention rates, as well as downwards pressure onpricing in major basic lines such as property insurance.
0Key Updates And Forecasts
We are forecasting the life insurance market to grow by about 17.3% a year on average over the course ofour forecast period, following a significant decline in 2015. The market remains nascent by globalstandards, however, underwritten premiums will jump from an estimated USD60mn in 2016 to aroundUSD116mn in 2020.
The non-life sector is considerably larger, with premiums of around USD989mn in 2016. Growth will,however, be slower than the life sector, with premiums increasing by 6% annually, on average, to reachUSD1.25bn in 2020.
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