The Bahrain insurance market has posted an annual growth of nine per cent in 2012 to register gross premium/contributions of BD239.05 million ($633.7 million), said the Central Bank of Bahrain in a report.

A significant part of this increase attributed to a surge in long-term insurance (life and savings products), registering around 14 per cent increase in gross premiums/contributions to reach BD60.16 million in 2012 compared with BD 52.59 million in 2011, representing almost 25 per cent of the total gross premiums/contributions written in 2012, it said.

Motor insurance represented a significant portion of insurance business written in Bahrain, representing almost 26 per cent of the total premiums/ contributions written in the insurance market in 2012, which has increased from BD55.63 million in 2011 to BD 61.99 million in 2012, up 11 per cent.

Medical insurance witnessed a growth of almost 7 per cent in gross premiums/contributions to register BD37.17 million in 2012 compared to BD 34.84 million in 2011, representing around 16 per cent of the total premiums/contributions written in the Bahraini insurance market in 2012.

Fire, property and liability insurance premiums/contributions represented 17 per cent of the total premiums/contributions written by insurance market in Bahrain in 2012.

The Takaful industry in Bahrain has experienced a growth of 22 per cent, registering BD53.67 million in gross contributions in 2012, compared to BD 43.91 million in 2011.

The gross contributions of Takaful firms represent around 22 per cent of the total Bahrain gross premiums/contributions in 2012.

The total assets of insurance and Takaful firms (including shareholders and participants funds) in 2012 stood at BD1,612.83 million compared to BD 1,463.31 million in 2011, up 10 per cent.

By end of 2012, Bahrain's domestic insurance market comprised of 26 locally incorporated firms and 11 overseas insurance firms (branches of foreign companies) carrying out insurance, reinsurance, takaful, retakaful and captives business.

“The insurance sector in Bahrain holds tremendous promise for growth, as demonstrated by the industry’s strong performance not only during 2012 but also during the past five years” said Abdul Rahman Al Baker, executive director, Financial Institutions Supervision, CBB.

“Bahrain is fast becoming a hub for major regional and international reinsurance and retakaful firms as evidenced by the increasing number of such firms that are established in the kingdom,” said Al Baker.

The gross premiums/contributions of reinsurance and retakaful firms registered BD312.11 million in 2012 compared to BD349.53 million in 2011, down 11 per cent.

“We expect the insurance sector to continue its growth in the coming years, mainly due to the increase in the public awareness on the importance of the insurance products in general, as well as due to the surge in the economic growth of the kingdom and the soundness of regulatory and supervisory framework of the insurance sector in Bahrain” added Al Baker. - TradeArabia News Service