Gross premiums/contributions generated by Bahrain’s domestic insurance sector amounted to BD272.09 million ($721.72 million) in 2015, compared to BD273.95 million ($726.66 million) in 2014, a Central Bank of Bahrain (CBB) report said.

The general insurance business (including medical insurance) contributed almost 80 per cent to the gross premiums.

The growth in business from the previous year has been strongest for medical insurance at 11 per cent followed by motor insurance at 4 per cent, the report said.

Long-term insurance comprised 20 per cent of the total gross premiums and holds tremendous growth potential, the report said.
Medical insurance, which increased from BD47.89 million in 2014 to BD53.39 million in 2015, showed an increase of around 11 per cent, representing almost 20 per cent of the total premiums/ contributions written in the insurance market in 2015.
Total gross premiums in motor insurance has increased from BD73.11 million in 2014 to BD75.78 million in 2015, showing an increase of around 4 per cent. Motor insurance is the largest in terms of gross premiums which represented around 28 per cent of the total premiums/contributions written in 2015.

The takaful industry in Bahrain has shown a growth in terms of gross contributions of 3 per cent to register BD63.22 million in 2015. Gross contributions of Takaful firms represent around 23 per cent of the total Bahrain gross premiums/contributions in 2015, it said.

By end of 2015, Bahrain's domestic insurance market comprised 25 locally incorporated firms and 11 overseas insurance firms (branches of foreign companies) carrying out insurance, reinsurance, takaful, retakaful and captives business. The locally incorporated firms consisted of 14 conventional insurance firms, six takaful firms, two reinsurance firms, two retakaful firms and one captive, while overseas insurance firms consisted of eight conventional insurance firms and three reinsurance firms. In addition, there are a substantial number of firms restricted to carry out business outside Bahrain and insurance ancillary services.

“The insurance sector in Bahrain holds good potential for growth, as demonstrated by the industry’s strong performance not only during 2015 but also during the past five years” said Abdul Rahman Al Baker, executive director, financial institutions supervision, at the CBB.

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

By end of 2015, there were five conventional reinsurance firms and two retakaful firms in Bahrain. The gross premiums/contributions of reinsurance and retakaful firms reached BD397.44 million in 2015 compared to BD412.53 million in 2014.

“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 soundness of regulatory and supervisory framework of the insurance sector in Bahrain,” added Al Baker. – TradeArabia News Service