According to Standards & Poor’s (S&P) Global Ratings, the insurance sector in Oman will see record growth this year of more than 10 per cent. This will be due in large part, said the ratings agency, to new mandate for compulsory medical cover for expatriates. Like the markets in Qatar and Kuwait, Oman is expected to be consistently profitable, although S&P warned that rising competitive pressure could be an issue.
For the last few years, medical insurance in Oman has not been profitable, as the combined ratio stood at over 100 per cent. But while the new compulsory medical cover directive could help to drive profitability, S&P also said that, if pricing is not appropriate, overall profitability could instead suffer.