LONDON, April 2013 — Continued growth is forecasted for Oman’s insurance market, but new Takaful licensing regulation is expected to generate additional competition for an already crowded market, according to a new report from A.M. Best Co. Over the long term, A.M. Best expects that underwriting profitability challenges could lead some insurers to exit the market, while larger insurers will maintain their leading positions.
The report, entitled “Oman’s Market Offers Opportunities; Fierce Competition Remains”, states that Oman’s insurance sector has grown rapidly in recent years and continues to offer growth opportunities.
The Omani insurance market is well-positioned to grow as revenues from the energy sector continue to finance infrastructure projects.
The pending introduction of Takaful licensing regulation by the Capital Market Authority (CMA) is likely to create further interest. While this is seen as a positive regulatory development, A.M. Best expects an influx of fresh capital trying to service a small market will only result in a more saturated one, unless Takaful offerings can open up a previously untapped market and increase overall insurance penetration.
To access a complimentary copy of this report, please click the following link: A.M. Best: GCC Market Review – Oman