Mubasher: The Central Bank of Bahrain (CBB) announced on Sunday that the insurance industry has shown steady results in 2015, where the general insurance business, including Medical insurance business, contributed almost 80% to the gross premiums.
The medical and motor insurance sectors achieved a growth of 11% and 4%, respectively during the last year, while total gross premiums increased 11% to BHD 53.39 million in 2015 from BHD 47.89 million in 2014.
Medical insurance contributed to almost 20% of the total premiums/ contributions written in the insurance market in 2015.
Total gross premiums in Motor insurance has increased to BHD 75.78 million in 2015 from BHD 73.11 million in 2014, with a 4% rise.
“The insurance sector in Bahrain holds good potential for growth, as demonstrated by the industry’s strong performance not only during 2015 but also during the past five years” Abdul Rahman Al Baker, executive director of the Financial Institutions Supervision at the CBB, said.
Motor insurance is the largest in terms of gross premiums and represents around 28% of the total premiums/contributions written in 2015, according to the CBB.
The conventional reinsurance firms reached five, while the retakaful firms reached two by the end of 2015, where the gross premiums/contributions of reinsurance and retakaful firms reached BHD 397.44 million in 2015 compared to BHD 412.53 million in 2014.
“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,” Fouad Abdulla, director of Insurance Supervision Directorate at the CBB, said.
Moreover, the CBB mentioned that gross premiums/contributions generated in the domestic market amounted to BHD 272.09 million ($721.72 million) in 2015 from BHD 273.95 million ($726.66 million) in 2014.
Long-term (life and savings products) insurance generated BHD 55.03 million ($145.97 million) gross premiums/contributions in 2015.
“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 the leading international insurance companies,” added Abdulla.
