Oman's Insurance Market Set to Benefit from New Rules
Type
E-journal
Date
26 Nov 2014
Jurisdiction
Oman
Taxonomy
Regulation & Offences, General Insurance Law, Medical Negligence
Copyright
LexisNexis
Relevant company
Al Busaidy, Mansoor Jamal & Co
Analysis
New regulations raising the minimum capital requirement for Omani insurers from 5 to 10 million Riyals and mandating listing on the Muscat Securities Market (MSM) have been described as ‘credit positive' by Moody's ratings agency. Oman Sultani Decree No 39/2014 issued in August 2014 amending Oman's Insurance Law, provides a three-year grace period for existing insurance companies to comply with the new rules. New market entrants must comply from the outset.
Background
Oman's insurance sector has expanded at an average rate of 14% annually over the last six years and has doubled its share of GDP from 0.6% in 2007 to 1.2% in 2013 when total direct insurance premiums reached 360 million Riyals according to a recent report. New segments like engineering, construction, medical liability and property have experienced robust growth. The introduction of mandatory insurance covers health, unemployment, motor third party and liability, as well as the launch of two takaful (Islamic insurance) companies, have increased market awareness and the diversification of insurance products.
Further information