Oman Insurance Market Size and Forecast by Insurance Type, End User, Insurance Product Line, Distribution Channel, Premium Type, and Risk Type: 2019-2033

Oman Insurance Market Outlook

ESG‑Anchored Embedded Agricultural and Corporate Insurance Models Redefine Oman’s Insurance Landscape

Oman’s evolving economic model and growing mobile penetration are enabling embedded agrarian and corporate insurance products aligned with ESG mandates. Super‑apps and mobile health wallets are embedding agri‑risk cover for farmers—linked to weather data and sustainability practices—alongside corporate benefit bundles combining annuities, health schemes, and ESG performance metrics. These embedded solutions support Vision 2040 objectives for diversification and social resilience. The Oman insurance market is expected to expand from approximately USD 4.0 billion in gross written premiums in 2025 to around USD 6.2 billion by 2033, translating into a CAGR of ~6.0%. This growth is driven by demand for sustainable agriculture protection, corporate benefits aligned with national ESG frameworks, and rising mobile-first distribution channels across life, health, and non‑life segments.

Mobile Coverage Expansion and Mandatory Health Schemes Propel Insurance Uptake

Rapid growth in mobile penetration, particularly in rural areas, is enabling insurers to distribute agri-embedded covers and wellness-linked corporate policies efficiently. The rollout of mandatory health insurance for expatriates and private employees has particularly boosted non-life premiums, with health insurance accounting for over one-third of gross written premium in recent years. Infrastructure-driven corporate risk awareness has fueled demand for trade, liability, and property insurance as large PPP projects unfold under Vision 2040. Moreover, rising awareness of financial protection and increasing disposable income among Omanis and expatriates are expanding demand for life unit-linked plans and personal annuities, supporting steady expansion of the life insurance sub‑segment.

Digital Literacy Gaps and Actuarial Capacity Constraints Limit Personalized Insurance Proliferation

Despite wealth and regulatory openness, Oman faces barriers. Digital literacy gaps, especially outside urban centers, hinder consumer adoption of mobile-first and embedded insurance products. Many policyholders prefer paper-based claims and personal advisory channels, limiting scale of digital-first agrarian and corporate solutions. Additionally, the shortage of skilled actuarial professionals constrains product innovation—especially in pricing ESG-linked covers and parametric agri-insurance. Smaller insurers struggle to employ advanced underwriting frameworks, slowing rollout of personalized policy options and microinsurance offerings, which rely heavily on data analytics for sustainability-linked pricing.

Instant Issuance via Super-Apps and Personalized ESG Plans Drive Market Differentiation

Innovation in the Oman insurance ecosystem centers on instant issuance via super-app channels, allowing farmers or corporate employees to sign up for embedded cover with minimal friction. ESG-integrated annuities reward sustainability practices such as solar-enabled farming—or corporate firms meeting environmental benchmarks—with premium discounts. Personalized policy plans tailored to different risk profiles—such as livestock-specific micro-agricover and executive health packages aligned with wellness indicators—are gaining traction. These offerings increase insurance inclusion, improve pricing transparency, and lower claims latency.

Regulatory Facilitation through CMA Oversight and National ESG Mandates Fortify Market Expansion

Oman insurance sector is regulated by the Capital Market Authority (CMA), which enforces compliance, solvency, and consumer protection. Recent regulatory developments under Vision 2040 mandate ESG reporting and push digital infrastructure adoption. The CMA promotes innovation in embedded insurance through licensing frameworks that allow partnerships with fintechs, mobile platforms, and rural cooperatives. Additionally, mandatory maternity insurance contributions from private sector employers and expatriate workers, taking effect in 2024, further enlarge the coverage pool. These initiatives support broader market participation and embedded distribution while maintaining regulatory integrity.

Key Performance Drivers: Agent Density, Reinsurance Access and Premium Growth Resilience

Several key factors shape the performance of Oman's insurance sector:

• Number of Licensed Agents and Brokers: With around 140 agents and 33 brokers, distribution relies heavily on personal networks. Scaling embedded insurance models requires expansion of digital intermediaries and rural touchpoints.
• Reinsurance Capacity Limitations: A single domestic reinsurer serves Oman’s market, making insurers partially reliant on international capacity. This affects ability to underwrite large agrarian or corporate portfolios domestically.
• Premium Growth and Solvency Ratios: While projected non-life and overall market CAGR is around 4–5% to 2028, embedded ESG-corporate lines and microinsurance models offer potential to exceed sector norms if mortality and lapse assumptions hold.
• Digital Capability Maturity Index: Insurers investing in cloud-native platforms, mobile onboarding flows, and claims automation outperform peers reliant on legacy systems.

Competitive Landscape: Consolidation and ESG‑Forward Product Design Lead Strategic Differentiation

Oman insurance market comprises 16 firms, including 14 conventional insurers and two takaful companies. Recent consolidation has created stronger national players like Liva Group (resulting from merger of Al Ahlia and National Life & General), with ~33% market share. Key firms also include Dhofar Insurance, Oman Qatar Insurance (OQIC), Oman United, and takaful providers Al Madina and Takaful Oman. Liva and OQIC lead product innovation in ESG annuities and agri-insurance pilots.

Strategic developments include:

• ESG Annuity Launch: In March 2025, National Life & General (now within Liva Group) unveiled ESG-aligned annuity products rewarding sustainable investment behaviors.
• Digital Agri-Embed Pilot: A consortium of insurers and agritech firms launched app-based crop weather insurance for date and vegetable farmers in early 2025.
• Corporate ESG Bundle: Health and life covers tied to sustainability reporting metrics introduced for SMEs participating in government supplier programs.

These strategies position Oman’s incumbents to capture growth from diversified agri and corporate segments while aligning with national sustainability directives.

Conclusion: ESG-Embedded Distribution and Digital Innovation Chart a Path for Oman’s Insurance Evolution

Oman insurance sector is poised for transformation through ESG-anchored embedded insurance for agriculture and corporate benefits, enabled by mobile-first distribution and regulatory support under Vision 2040. The sector can capitalize on sustained demand for health, agrarian, and life-linked products.

Digital inclusion, skill development in actuarial pricing, and expansion of embedded channels will determine winners. Insurers that partner with fintech and agritech ecosystems, and invest in cloud-native infrastructure, are best positioned to lead the evolving insurance ecosystem in Oman, delivering both scale and ESG-aligned value.