The overall GWP in the Bahraini insurance sector is estimated to have fallen in 2020 due to lower economic activity, a decline in tourism from Saudi Arabia and other countries in the region, and a decrease in the sales of new cars, says S&P Global Ratings.
Mr Emir Mujkic, director-lead analyst, Insurance Ratings at S&P Global Ratings, said in the report “GCC Insurers In 2021 - Robust Capital Supports Credit Quality” released last month, “In our view, GWP growth in 2021 could be flat at best because of ongoing weaker economic conditions. However, a potential introduction of a mandatory medical scheme could support GWP growth in the coming years.”
He also said that with 36 licensed insurers, competition in the relatively small market will remain high.
“However, underwriting results will likely stay profitable overall, and we expect the market average combined ratio to be in the 95%-97% range in 2020-2021,” said Mr Mujkic.