The Middle East, still relatively young compared to other regions, is one of the most dynamic and attractive insurance markets in the world, said David McLean, organiser of the Annual Middle East Insurance Forum (MEIF 2012).

Convened under the official patronage of the Central Bank of Bahrain (CBB), the forum opens today at the Gulf Convention Centre at the Gulf Hotel.

The two-day event is set to gather more than 450 international delegates representing 150 leading organisations.

'The Middle East insurance industry is still relatively young compared to other more developed markets in the world,' said McLean.

'Despite enjoying double-digit growth rates in gross premiums, the penetration rate across the Middle East remains considerably below the global average,' he added.

'Low penetration rates, huge government spending on developmental projects, and a relatively young demographic profile make the Middle East one of the most dynamic insurance markets in the world,' he stated.

'However it is essential that the current growth momentum in the industry is continued in the long term and this requires leading players in the industry to concentrate on profitability, scale and building a strong core business mix to ensure long term sustainability,' he added.

Held under the theme 'Transforming the Regional Insurance Market: Building Scale, Boosting Competitiveness and Seizing Growth Opportunities', the forum will focus discussions on identifying new trends in the global insurance industry and rethinking growth strategies to capture the huge growth opportunities that exist in the Middle East insurance markets.

The event will open with a keynote address by CBB executive director of financial institutions supervision Abdul Rahman Al Baker.

'As a regulator of one of the key markets in the Middle East, the CBB is keen to see the regional insurance industry further grow and prosper to the next level of market development,' said Al Baker.

'The advancement of the insurance industry in Bahrain is a key component of the kingdom's comprehensive strategy to develop a competitive, dynamic and diversified economy.'

'The CBB has been successfully providing a strong framework for the insurance industry to operate and we will continue to consult with the industry to ensure that we are responsive to the needs of the industry.'

'Events like the Middle East Insurance Forum play a critical role in facilitating such dialogues,' he added.

'Despite the prevailing global financial challenges, the insurance industry in the Middle East in general and particularly in the Gulf countries managed to sustain a steady growth over the years,' said MetLife Alico Gulf general manager Mario Valdes.

'Looking ahead, favourable macro-economic indicators and the low levels of insurance penetration that characterise the markets of the region allow us to predict that there will be significant opportunities for substantial growth in the years to come,' he said.-TradeArabia News Service