Although the sale of insurance through banks is yet to match European standards, the prospects for further growth and development in bancassurance in Bahrain remain strong.

That was the message from Central Bank of Bahrain financial institutions supervision executive director Abdul Rahman Al Baker to delegates at the second "Middle East Conference on Bancassurance and Alternative Distribution Channels" held at the Sheraton Hotel on Monday.

"The low penetration rate of life insurance, coupled with the increasing sophistication of consumers, point towards a large untapped market potential," he said.

"The single product relationships, mainly in the form of savings or current deposit accounts, continue to dominate retail banking in Bahrain, underscoring the scope that still exists for banks to more effectively leverage on banking relationships with their customers by offering an expanded product range, including insurance products and services.

"The other reasons that support further growth in bancassurance in Bahrain is that customers visiting bank branches are still common, indicating valuable opportunities for banks to have face-to-face contact with customers who are already pre-disposed to considering insurance solutions to meet their diverse financial needs.

"Last but not least, the high-level of confidence and trust generally placed by the public in banks make them particularly well-positioned to attract consumers to purchase life and other insurance products from their distribution outlets," he said.

"As a regulator, we believe that bancassurance contributes positively towards more diversified cost-effective alternative channel for the distribution of insurance products through banks to meet the needs of consumers and enhance the efficiency of the financial system by improving the delivery and distribution for the financial services," he said.-TradeArabia News Service