2.2% decrease in insurance premiums in first quarter

      Published on Monday, 18 May , 2020      725 Views     
2.2% decrease in insurance premiums in first quarter

  • Business

The unaudited financial statements for the first quarter show a slight decrease in direct insurance premiums at 2.2 per cent.

Gross direct premiums were OMR149.2 million during the first quarter of 2020 decreasing compared to the past year which was OMR152 million.

Insurance companies’ performance report during the first quarter of 2020 shows that total operational results of the sector witnessed increase in net claims paid by insurance companies by 11 per cent compared to the same period in the past year to OMR48.8 million from OMR43.8 million in the first quarter of 2019.

Earned premiums recorded increase to OMR76 million from OMR75 million in the same period in the past year. Net commissions were OMR909,000.9 increasing by more than 100 per cent.

Administrative and general expenses increased to 6 per cent compared by the past year.

The performance of the insurance products in the first three months of the current year was mixed. Transport insurance products increased by 35 per cent.

Properties insurance increased by 20 per cent, such insurance covers loss and damage risks and differs from marine, aviation, transport and motor insurance.

Liability insurance witnessed increase in gross premiums by 9 per cent, this insurance provides coverage for legal liability for claims by third parties for compensation and damage for loss incurred in properties accidents or bodily injuries or death related to a third party.

The first quarter of the current year witnessed considerable decrease in insurance products the key is life insurance by 10 per cent as well as motor insurance which decreased by the same percentage compared to the same term in the previous year. Other insurance products decreased by 21 per cent.

Engineering insurance decreased by 4.4 per cent and health insurance decreased by 1 per cent.

With regard to distribution of direct premiums of insurance products it was noted that health insurance tops the insurance products by 41 per cent of the market share followed by motor insurance at 22 per cent then properties by 12 per cent of the total insurance portfolio in the first quarter of the current year. The remaining share was distributed among the other insurance products at 5 per cent for engineering, 4 per cent for transport, 2 per cent for liability and 4 per cent for other products. The share of life insurance was 10 per cent of the total insurance portfolio.

Category Business | 2020/05/18 latest update at 6:00 AM
Source : Times of Oman | Photocredit : Google
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