Definition
The insurance market in Oman comprises conventional insurance companies, takaful (Islamic insurance) operators, and brokers, all regulated by the Capital Market Authority (CMA). Insurance products span motor, health, property, marine, engineering, liability, life, and family takaful lines. Insurance penetration (premiums as a percentage of GDP) in Oman remains below the global average, indicating significant growth potential.
Context in Oman
Oman insurance sector includes around 20 conventional insurers and three takaful operators, along with numerous brokers and agents. Motor insurance is the largest line by premium volume, driven by compulsory third-party liability coverage. Health insurance is growing, particularly as employers increasingly offer group medical cover. The CMA has introduced regulations to improve market conduct, capital adequacy, and consumer protection. Recent reforms include the introduction of a unified motor insurance tariff, implementation of risk-based solvency frameworks, and mandatory actuarial reserving standards. The market is gradually consolidating through mergers, with the CMA encouraging stronger, better-capitalised insurers.
Key Data Points
| Metric | Value |
|---|---|
| Number of conventional insurers | ~20 |
| Number of takaful operators | 3 |
| Largest line of business | Motor insurance |
| Insurance penetration | Below global average (~1.5 % of GDP) |
| Regulator | Capital Market Authority |
Vision 2040 Connection
Vision 2040 targets increased insurance penetration as part of financial sector deepening and social protection. Expanding health insurance coverage, promoting takaful, and encouraging uptake of life and savings products align with the strategy broader goals of building a resilient, inclusive economy where citizens are better protected against financial shocks.
Further Reading
- [[What is Takaful]]
- [[Oman Banking Sector Overview]]
- [[Oman Capital Markets Guide]]