New data from Oman’s Capital Market Authority (CMA) shows that insured losses from Cyclone Mekunu, which hit the country in May 2018, have reached OMR 108 million (USD 281 million), according to the Times of Oman.
Cyclone Mekunu was the most intense tropical cyclone to make landfall in the Arabian Peninsula in recorded history, causing widespread flooding and wind damage as it tracked over Oman in late May, killing seven people
The CMA revealed that 20 re/insurance firms had received a total of 762 claims at the beginning of July, comprising OMR 101,455,109 of losses for reported claims and OMR 5,676,944 of expected losses for unreported claims.
Claims related primarily to property, vehicles, engineering, marine equipment, and other damages, the CMA said.
Ahmed Al Mamari, Vice President of the insurance sector at the CMA, told the Times of Oman: “Insurance companies in Oman have enough experience in dealing with losses caused by cyclones and natural disasters, especially after cyclones Gonu and Phet struck the country in 2007 and 2010 respectively.”
Al Mamari added that the insurance sector was fulfilling its commitments to those affected by the cyclone, but echoed the Chief Executive Officer’s (CEO) calls for companies to speed up the compensation procedures.
“Insurance companies have responded very well to the call of the CEO,” he stated. “Since the cyclone, more people have begun realising the importance of having insurance coverage.”
Hussein bin Hathieth Al Bat’hari, Head of the Oman Chamber of Commerce and Industry in Dhofar, also commented: “After the cyclone, awareness about insurance increased significantly and we received a lot of calls from citizens asking about insurance and how to benefit from it.”
“The Chamber allowed the affected insurance companies to open offices for free in the Chamber building so that they could work and limit the damages and compensate the affected people,” Al Bat’hari added.
Philip K Philip, Chief Executive Officer of Muscat Insurance Company, added: “Between the dates of the incident and today, from our books, I can say that the number of insurance claims has gone up, and although the figures are changing, the amount is beginning to crystallise now.
This announcement follows a report from A.M. Best, which urged countries in the Gulf Cooperation Council (GCC), such as Oman, to put greater focus on enterprise risk management (ERM) strategies following the impact of Cyclone Mekunu and other recent natural catastrophes in the region.
