Bahrain - The gross premiums (conventional and Takaful) generated in Bahrain amounted to BD151.49 million ($402 million) in the six months (H1) ended June 30, 2023 compared to BD146.86 million in 2022, logging a growth rate of around 3.1%.
General insurance business (including medical insurance business) contributed to around 90% of the gross premiums written for the same period of 2023, according to the Central Bank of Bahrain (CBB).
Total gross premiums of medical insurance have increased from BD46.78 million in H1 2022 to BD52.31 million in the same period of 2023, showing an increase of around 12%. Medical insurance is the largest in terms of total gross premiums which represented around 35% of the total gross premiums written in the period.
The total gross premiums in motor insurance class increased by 8% to reach BD38.89 million compared to BD36.06 million in the same period of 2022. Motor insurance is the second largest class of insurance in terms of gross premiums which represented around 26% of the total premiums written in the period.
Life insurance and savings products (Long-term insurance) generated gross premiums of BD15.90 million in H1 2023 compared to BD23.32 million in the same period of 2022.
The long-term insurance premiums represented 10% of the total gross premiums written by insurance market in Bahrain in H1 2023.
Total gross contributions of Takaful firms registered BD46.67 million in the six months compared to BD41.30 million in the same period of 2022. Gross contributions of Takaful firms represent around 31% of the total Bahrain gross premiums in the six months.
Bahrain's domestic insurance market comprises 21 Locally Incorporated Firms and 10 Overseas Insurance Firms (branches of foreign companies) carrying out Insurance, Reinsurance, Takaful, Retakaful and Captives business in the Kingdom of Bahrain. The locally incorporated firms consisted of 12 Conventional Insurance Firms, 5 Takaful Firms, 2 Reinsurance Firms, 1 Retakaful Firm and 1 Captive, while Overseas Insurance Firms consists of 9 Conventional Insurance Firms and 1 Reinsurance Firm. In addition, there are a substantial number of insurance brokers and insurance ancillary services.
Rise in health insurance
“The insurance sector in Bahrain has seen growth in the gross premiums, driven by a rise in health insurance. Moreover, the insurance sector in the kingdom provides a fertile ground for local and international companies to innovate and drive transformative change to provide insurance solutions to meet the evolving needs of individuals and companies in light of the digital development in the financial sector in general, it can be represented by the use of data analysis techniques and artificial intelligence to improve their risk assessment and provide innovative services,” said Abeer Al Saad, Executive Director, Financial Institutions Supervision, CBB.
“Raising insurance awareness and need will positively affect the insurance sector, and we urge companies to go beyond traditional approaches to provide services and explore innovative solutions to enhance the work efficiency and gain a competitive advantage,” added Al Saad.
"The insurance sector in Bahrain is undergoing a transformative journey with the implementation of the international standard “IFRS17” and many other initiatives launched by the CBB in cooperation with several entities. The initiatives affirm commitment and urge to advance the industry standards and ensure financial transparency with a focus on innovation, customer-centricity, and sustainability. Therefore, the insurance sector in Bahrain is poised to deliver enhanced services, increase insurance awareness and growth in the sector under an encouraging regulatory environment,” said Elham Taleb, Director, Insurance Supervision Directorate, CBB.
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).