Bloomberg/Christopher Pike

Insurance

Oman's mandatory health cover plan will spur premium growth

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The Sultanate first announced plans for compulsory health insurance in September 2017 with intentions to roll out the new cover in stages before the end of 2019, starting with private sector employees.

Thursday 04, April 2019 BY KUDAKWASHE MUZORIWA

Oman's Capital Market Authority (CMA) plans to introduce mandatory basic health insurance cover for all nationals, expatriates and visitors, a move which is expected to spur premium growth and generate additional cross-selling opportunities for healthcare insurers in the Sultanate.

In a report, Moody’s said that in 2017 before the introduction of the mandatory cover, health premiums grew by 16 per cent, accounting for 30 per cent of total premiums written in Oman.

Larger insurers with better claims handling capacity and underwriting expertise are projected benefit most from the mandatory health cover.

The new scheme will allow insurers to unlock extensive untapped potential in the Omani market and premium growth is expected to emerge over the short to medium-term, reflecting the phased introduction of the new cover.

Oman's total healthcare expenditure amounted to 3.8 per cent of GDP in 2015, in line with other GCC countries.

TAGS : Health Insurance , Oman CMA, Moody’s

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