(MENAFN- Muscat Daily) The total value of insurance premiums in Oman grew by ten per cent to hit RO400.4mn in 2014 from RO364mn a year earlier according to Ahmed bin Ali al Ma'amari director general for insurance at the Capital Market Authority (CMA).
The growth however varied across the various segments.
In a statement to the Oman News Agency Ma'amari said all the industry segments posted good growth in 2014 except property and 'other insurance' which fell by three per cent and six per cent respectively. Health insurance recorded the highest growth of 31 per cent followed by transport with a 21 per cent gain.
Ma'amari said the growth in net written premiums reflected positively on total net premiums which are premiums held by the insurance company after deducting what is re-insured by reinsurers.
He pointed out that the total value of net direct premiums rose by 13 per cent in 2014 as health insurance and other insurance achieved the highest growth rates.
Ma'amari said that most segments witnessed a rise in rates of retention. Auto insurance posted the highest levels of retention - 88 per cent for comprehensive and 83 per cent for third-party insurance - while the property engineering insurance and transport insurance segments logged the lowest levels with nine per cent 23 per cent and 21 per cent respectively as a result of reinsurance of the bulk of these risks with reinsurance companies.
He added that unaudited data also showed a slight decrease in the percentage of retention in the individual life insurance segment - which came in at 73 per cent for 2014.
Total net commissions commissions taken by insurance companies from global reinsurers for the reinsurance of part of the local insurance policies increased from RO16.3mn in 2013 to RO22.5mn in 2014. There was also a noticeable change in the cost of production data in 2014 compared with 2013 rising from RO23.4mn to RO44mn.
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