Medical insurance witnessed the fastest growth among the various branches of insurance in Bahrain last year, growing by almost 11% in gross premiums/contributions to BHD53.39 million (US$185 million) in 2015 compared to BHD47.89 million in 2014, according to the Central Bank of Bahrain (CBB). Medical insurance represented around 20% of the total premiums written in the Bahraini market last year.
Motor insurance constituted the single largest class of business, generating gross premiums of BHD75.78 million in 2015, an increase of 4% from BHD73.11 million in 2014. Motor insurance accounted for 28% of the total premiums/contributions written by insurance market in Bahrain last year.
Overall, gross premiums/contributions generated in the domestic market amounted to BHD272.09 million in 2015, a slight dip compared to BHD273.95 million in 2014.
Long-term (life and savings products) insurance generated gross premiums of BHD55.03 million or 20% of the total premiums written by insurance market last year.
The takaful industry showed growth in terms of gross contributions of 3% to BHD63.22 million in 2015. This represented around 23% of the total gross premiums/contributions in 2015.
The gross premiums/contributions of reinsurance and retakaful firms reached BHD397.44 million in 2015 compared to BHD412.53 million in 2014.
Outlook
“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 Mr Abdul Rahman Al Baker, Executive Director, Financial Institutions Supervision, at the CBB.
“We expect the insurance sector to continue its growth in the coming years, mainly due to the increase in public awareness of the importance of the insurance products in general, as well as the soundness of the regulatory and supervisory framework of the insurance sector in Bahrain,” added Mr Al Baker.
At the end of 2015, Bahrain’s domestic insurance market comprised 25 locally incorporated firms and 11 branches of overseas entities carrying out insurance, reinsurance, takaful, retakaful and captive business in the Kingdom. The locally incorporated firms consisted of 14 conventional insurers, six takaful operators, two reinsurers, two retakaful firms and one captive insurer, while overseas insurance firms consisted of eight conventional insurers and three reinsurers. In addition, there are a substantial number of firms restricted to carrying out business outside Bahrain and insurance ancillary services.
BHD1 = US$3.46