Bahrain insurance premiums grow 8pc
Manama, July 23, 2014
Bahrain insurance market has posted a gross premium increase of eight per cent to register BD258.41 million ($681.7 million) last year, compared to the previous year, according to the Central Bank of Bahrain.
Motor insurance attributed a significant part of this increase, with BD68.05 million last year, up 10 per cent from the previous year, said a statement.
It was the largest in terms of gross premiums which represented about 26 per cent of the total premium written last year, it said.
Medical insurance increased from BD37.17 million in 2012 to BD40.83 million last year, also rising about 10 per cent and representing nearly 16 per cent of the total premius written in the insurance market.
The Takaful industry in Bahrain has experienced a growth in gross contributions by sevent per cent to BD57.22 million last year, with the gross contributions representing around 22 per cent of the total last year.
The total assets of insurance and takaful firms last year stood at BD1,698.33 million compared to BD 1,613.28 million the previous year, up about five per cent.
Meanwhile, the kingdom’s domestic insurance market comprised 25 locally incorporated firms and 11 overseas insurance firms carring out insurance, reinsurance, takaful, retakaful and captives business.
Abdul Rahman Al Baker, executive director, Financial Institutions Supervision, CBB, said: “The insurance sector in Bahrain holds tremendous promise for growth, as demonstrated by the industry’s strong performance not only during 2013 but also during the past five years.
“Bahrain is fast becoming a hub for major regional and international reinsurance and retakaful firms as evidenced by the number of such firms that are set up in the kingdom.”
The gross premiums of reinsurance and retakaful Firms reached BD336.57 million by the end of last year, compared to BD312.12 million in 2012, an increase of around eight per cent.
“We expect 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,” said Al Baker.
The gross premiums generated in the domestic market amounted to BD258.41 million, up from BD239.05 million in 2012.
The fire, property and liability insurance premiums represented 18 per cent of the total premiums written by insurance market in Bahrain last year. It totaled to BD47.20 million last year compared to BD41.75 million the previous year.
Fouad A Wahid, director, Insurance Supervision Directorate at CBB, said: “Due to the well established regulatory regime, a number of leading international insurance companies established their insurance and reinsurance operations in Bahrain both in conventional and takaful, which has further consolidated Bahrain global profile as a financial centre.
“The increase of insurance ancillary services in Bahrain provides an important source of synergy to these international companies.”
“The CBB continues to further enhance its regulatory framework to be in line with the best international financial standards and boost the confidence of the insurance licensees and general public,” he added. - TradeArabia News Service