The Bahrain insurance market grew by 5 percent during 2014, compared with 2013, with gross premiums/contributions registering BD270.76 million (£473.16 million) in 2014, according to the Central Bank of Bahrain (CBB).
According to the CBB, a significant part of this increase was due to a surge in medical insurance, which increased from BD40.83 million in 2013 to BD48.59 million in 2014, showing an increase of around 19 percent and representing almost 18 percent of the total premiums/contributions written in the insurance market in 2014.
Motor insurance also increased from BD68.05 million in 2013 to BD72.25 million in 2014, an increase of around 6 percent. Motor insurance posted the largest total of gross premiums which represented around 27 percent of the total premiums/contributions written in 2014, according to the CBB.
The takaful (mutual guarantee) industry in Bahrain generated gross contributions amounted to BD57.29 million in 2014 compared to BD57.22 million in 2013. Gross contributions of takaful firms represented around 21 percent of the total gross premiums/contributions in 2014.
By the end of last year, Bahrain’s domestic insurance market comprised of 25 locally incorporated firm and 11 overseas insurance firms, carrying out insurance, reinsurance, takaful, retakaful and captives business in the Kingdom of Bahrain.
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 were a substantial number of firms restricted to carry out business outside Bahrain and insurance ancillary services.
“The insurance sector in Bahrain holds tremendous promise for growth, as demonstrated by the industry’s strong performance not only during 2014 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 set up in the Kingdom.”
Al Baker also said the CBB expects 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 surge in the economic growth of the Kingdom and the soundness of regulatory and supervisory framework of the insurance sector in Bahrain.