Manama, Bahrain: – The Central Bank of Bahrain announced today that the insurance industry has shown positive results for the six months ended 30 June 2021, with general insurance business (including Medical insurance business) contributing 79% to the gross premiums. The growth in insurance business from the previous year has been strongest for Long-term and Medical at 23% and 9% respectively for the same period of 2021.
Total gross premiums in the six months ended 30 June of the Medical insurance has increased from BD 41.93 million in 2020 to BD 45.73 million by end of June 2021, showing an increase of around 9%. Medical insurance is the largest in terms of gross premiums which represented around 32% of the total premiums/contributions written in the period ended 30 June 2021.
Gross premiums/contributions generated in the domestic market amounted to BD 143.70 million (US$ 382.18 million) in the six months ended 30 June 2021 compared to BD 134.63 million (US$ 358.05 million) in 2020, showing growth of around 6.7%
A significant part of such results attributed to a surge in Long-term insurance, which has increased from BD 24.65 million for the period ended June 2020 to BD 30.39 million for the same period in 2021, showing an increase of around 23% and representing almost 21% of the total premiums/ contributions written in the insurance market in the six months ended 30 June 2021.
Motor insurance constituted the second largest class of business, generating gross premiums/contributions amounted to BD 34.51 million in the six months ended 30 June 2021 compared to BD 36.59 million for the same period in 2020. Motor insurance accounted for 24% of the total premiums/contributions written by insurance market in Bahrain in the six months ended 30 June 2021.
Total gross contributions of Takaful Firms registered BD 43.76 million in the six months ended 30 June 2021. Gross contributions of Takaful Firms represent around 30% of the total Bahrain gross premiums/contributions in the six months ended 30 June 2021.
In the six months ended 30 June 2021, Bahrain's domestic insurance market comprised of 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.
“The insurance sector in Bahrain holds tremendous promise for growth, as demonstrated by the industry’s strong performance for the six months ended June 2021, this is despite the repercussions of the COVID-19 pandemic, as it was one of the reasons for increasing insurance awareness, especially with regard to health/medical insurance and its importance in such circumstances” 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 the public awareness on the importance of the insurance products in general, as well as due to the soundness of regulatory and supervisory framework of the insurance sector in Bahrain” added Mr. Al Baker.
“The CBB is following up with insurance companies the process of digital transformation in insurance services, especially in Motor and Medical insurance, in line with the vision of the Kingdom of Bahrain and the CBB for digital transformation, in order to provide the best and ease insurance and financial services to the public and to apply best practices to ensure the protection of the public of citizens and insurance companies operating in Bahrain” said Mrs. Elham Taleb - Director, Insurance Supervision Directorate, at the CBB.
© Press Release 2021