|
Penetration of less than two per cent makes Oman an attractive market for the insurance business. Apart from a small base, a number of other factors bodes well for the sector’s future. As a majority of the population is under the age of 20, the life insurance business can go only one way – up. The US$12bn worth of investments planned in Sohar and real estate developments in the other parts of the sultanate are sure to give a shot in the arm to general insurance companies. Traditionally, a few big players have dominated the sector but the last few years have seen the entry of new players like Falcon, AIG and Al Madina Insurance. The survey captures some of this action – Al Ahlia races ahead of Dhofar Insurance to occupy the pole position and New India Assurance tips the scales on Oman United Insurance.
Time for a shakeout
Oman United Insurance and Al Ahlia were in talks for a merger in April 2007 – the merged entity held the prospect of being the largest insurance company in the Middle East. Unfortunately, the negotiations hit a roadblock and were called off in a month. A small market with a player too many makes the sector a strong candidate for mergers and acquisitions. Such consolidation is sure to shake up the charts.
Makeover magic
A redesigned logo and re-branding effort see Al Ahlia making it to the top of the charts. The oldest non-life insurance company in the sultanate went in for an image makeover in 2007 and it beats Dhofar Insurance (last year’s winner) fair and square. Talk about the power of branding.
Taking a hit
The largest insurance company in the sultanate, Dhofar Insurance, was in the news lately due to the number of claims that it settled in the wake of Cyclone Gonu. Being a leader in the insurance business cuts both ways – a 50 per cent share of the market when the going is good, but a RO40mn insurance settlement burden because of the calamity. The latter may have impacted its standing on the charts. |
|
