Life insurance - Oman

Oman

The Life insurance market market in Oman is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is predicted to reach US$2.00bn in 2024.
Furthermore, it is estimated that the average spending per capita in the Life insurance market market will amount to US$0.42k in the same year.
Looking ahead, the market is expected to maintain a steady growth trajectory.
With an annual growth rate of 6.47% (CAGR 2024-2028), the gross written premium is projected to reach US$2.57bn by 2028.
This demonstrates the increasing importance of Life insurance market in Oman.
In a global context, it is worth noting that the United States is anticipated to generate the highest gross written premium in 2024, amounting to an impressive US$1,271.0bn.
This highlights the dominant position of the United States in the global Life insurance market market.
Overall, these figures illustrate the potential and significance of the Life insurance market market in Oman, as well as its position in the global landscape.
Oman's life insurance market is experiencing steady growth due to increasing awareness about the importance of financial protection and long-term planning.

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Analyst Opinion

The Life insurance market in Oman has been experiencing notable developments and trends in recent years.

Customer preferences: Customers in Oman are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. This trend aligns with the global shift towards more comprehensive life insurance coverage that provides long-term benefits beyond just risk protection.

Trends in the market: One prominent trend in the Omani life insurance market is the growing popularity of unit-linked insurance plans. These plans allow policyholders to invest in a variety of funds while also receiving life insurance coverage, catering to individuals looking for both wealth accumulation and insurance protection. Additionally, there is a noticeable rise in the demand for customized life insurance solutions tailored to specific needs, reflecting a more sophisticated customer base in Oman.

Local special circumstances: Oman's insurance sector is heavily influenced by regulatory frameworks that aim to enhance transparency and consumer protection. The Insurance Regulatory Authority in Oman plays a crucial role in ensuring that insurance companies comply with regulations and operate ethically. This emphasis on regulatory oversight contributes to a sense of trust and reliability in the Omani life insurance market, attracting more customers to invest in insurance products.

Underlying macroeconomic factors: The steady economic growth in Oman, driven by diversification efforts beyond the oil sector, has had a positive impact on the life insurance market. As individuals experience increased disposable income and financial stability, the awareness and uptake of life insurance products have also risen. Moreover, the young demographic profile of Oman, with a growing middle class, presents significant opportunities for life insurance companies to expand their customer base and offer innovative products tailored to different life stages.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.