The Bahraini insurance market posted growth in gross premiums of around 5% to BHD270.76 million (US$718 million) in 2014 over 2013, according to the Central Bank of Bahrain (CBB).
A significant part of this increase is attributed to a growth in medical insurance, from BHD40.83 million in 2013 to BHD48.59 million in 2014, an increase of around 19% and representing almost 18% of the total premiums written, said the CBB.
Motor insurance increased from BHD68.05 million in 2013 to BHD72.25 million in 2014, showing a growth of around 6%. Motor insurance is the largest branch in terms of gross premiums at around 27% of the total premiums written in 2014.
Long-term (life and savings products) insurance generated gross premiums/ contributions amounting to BHD56.88 million in 2014, accounting for 21% of total market premiums.
The takaful industry in Bahrain generated gross contributions amounting to BHD57.29 million in 2014, compared to BHD57.22 million in 2013. Gross contributions represented around 21% of the total gross premiums/ contributions in 2014.
The gross premiums/ contributions of reinsurance and retakaful firms reached BHD412.52 million in 2014, up 23% y-o-y. By the end of 2014, there were five conventional reinsurance firms and two retakaful operators in Bahrain.
“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 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 due to the surge in the economic growth of the Kingdom and the soundness of the regulatory and supervisory framework of the insurance sector in Bahrain,” added Mr Al-Baker.
At the end of 2014, Bahrain’s domestic insurance market comprised 25 locally incorporated insurers and 11 overseas insurance firms (branches of foreign companies). Locally incorporated insurers consisted of 14 conventional insurers, six takaful operators, two reinsurers, two retakaful firms and one captive, while overseas insurance firms comprised eight conventional insurers and three reinsurers.
BHD1 = US$2.64