Bahrain: Insurance market forecast to expand by 6-7% this year
Source: Middle East Insurance Review | Apr 2017
The insurance market in Bahrain is forecast to rebound, growing by 6-7% this year, with health insurance, life insurance and takaful expected to drive the growth, according to Mr Abdul Rahman Al Baker, Executive Director of Financial Institutions Supervision, Central Bank of Bahrain (CBB).
For 2016, however, market growth was expected to be slower than in previous years, according to industry players. The official data for the insurance industry’s performance in 2016 have yet to be released.
A report issued by the CBB last November said that gross premiums generated by Bahrain’s domestic insurance sector amounted to BHD272.09 million (US$721.72 million) in 2015, 1% lower than the BHD273.95 million posted for 2014. The general insurance business (including medical business) contributed almost 80% to the gross premiums, while long-term insurance comprised the remaining 20%.
Gross premiums increased by 5% in 2014, 8% in 2013 and 9% in 2012, according to CBB data.
Mr Al Baker also said that some conventional and Islamic insurers in Bahrain intend to create larger entities through mergers. Speaking on the sidelines of the two-day Middle East Insurance Forum in February, he said that mergers will help companies enhance their competitive edge and find a foothold in the Arabian Gulf region and the world.