Oman’s Digital Insurance Premiums Set to Surge 35.5% in 2025: Key Insights for Investors and Entrepreneurs
The Financial Services Authority (FSA) has reported a positive financial performance in Oman’s insurance sector for the year 2025, underscoring the sector’s sustained growth and its enhanced adaptability to economic and operational shifts.
This progress was driven by improved investment returns, consistent underwriting activity across multiple insurance segments, increased reliance on digital technologies, and the expansion of insurance services.
Notably, the sector experienced a significant rise in the use of digital channels, with premiums collected via digital platforms growing by 35.5%, and premiums through bancassurance channels increasing by 38.1%. This trend highlights the rapid pace of digital transformation and the rising customer preference for digital insurance solutions, thereby broadening access to insurance services throughout Oman.
Audited financial data revealed that total insurance revenue rose to RO 501.6 million in 2025, up from RO 483 million in 2024—a growth of 3.86%. This increase reflects ongoing expansion in insurance activities and heightened demand for insurance products and services.
The growth was primarily propelled by national insurance companies, whose revenues climbed to RO 404.2 million from RO 389.5 million in 2024, marking a 3.78% increase. Foreign insurers also showed strong performance, with revenues rising 4.19% to approximately RO 97.4 million compared to RO 93.4 million the previous year. These results demonstrate the strong appeal and robustness of Oman’s insurance market, supported by a diverse portfolio of insurance products and increasing awareness among individuals and businesses regarding the importance of insurance coverage.
Total assets within the sector grew by 6.9%, reaching RO 1.31 billion in 2025. Investment income surged by 42.6%, hitting RO 49 million, up from RO 34.3 million in 2024. This reflects improved investment portfolio management and a greater ability to generate higher returns.
Net profits for insurance companies also rose sharply by 36%, reaching approximately RO 34.3 million compared to RO 25.2 million in 2024. This was driven by higher investment returns and enhanced operational performance across multiple firms. Despite variations in underwriting performance influenced by insurance portfolio compositions, claim levels, and operating costs, insurance service results amounted to around RO 11.7 million in 2025. The sector’s financial stability was further reinforced by robust risk management practices and improved underwriting efficiency.
Gross written premiums (GWPs) increased by 8.9%, totaling approximately RO 551.8 million in 2025 compared to RO 506.6 million in 2024. This growth was mainly supported by a 42% expansion in life and savings insurance and a 6% rise in health insurance. At the same time, total claims incurred dropped by 4.1%, falling from RO 279.4 million in 2024 to RO 267.8 million in 2025. Loss ratios for both national and foreign insurers also improved, reflecting better risk management and underwriting processes.
The Takaful insurance segment maintained steady growth, with revenues increasing by 1.04% to approximately RO 75.35 million, up from RO 74.57 million in 2024. Takaful revenues accounted for 15% of the total insurance sector’s revenues, highlighting the sector’s significance within the broader insurance industry.
These results affirm the ongoing development of Oman’s insurance sector, its expanding role in supporting the national economy, and its commitment to providing financial protection to both individuals and institutions. This progress aligns with regulatory advancements, digital transformation initiatives, and sustainable economic development objectives.
Special Analysis by Omanet | Navigate Oman’s Market
The 2025 insurance sector growth in Oman, driven by a 35.5% rise in digital premiums and a 42.6% surge in investment income, signals accelerated digital transformation and stronger financial resilience. For businesses, this means expanding opportunities for digital insurance services and enhanced risk management, while smart investors should consider capitalizing on rising profitability and diversified portfolios in both national and foreign insurance firms. The steady growth of Takaful insurance also highlights increasing demand for Sharia-compliant financial products, presenting niche market potential.
