Insurance sector in Bahrain has recorded steady growth in 2011. A significant part of this increase attributed to a surge in engineering insurance, registering around 31 per cent increase in gross premiums to reach BHD16.46 million in 2011 compared with BHD12.55 million in 2010, representing almost eight per cent of the gross premiums written in 2011.
Growth was also reported under medical insurance from BHD31.75 million in 2010 to BHD34.84 million in 2011, showing an increase of around 10 per cent.
The total assets of insurance and Takaful firms in 2011 stood at BHD1,464.04 million compared to BHD1,360.51 million in 2010, showing an increase of almost eight per cent.
y end of 2011, Bahrain’s domestic insurance market comprised of 27 locally incorporated firms and 11 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 14 conventional insurance firms, seven Takaful firms, two Reinsurance Firms, two ReTakaful firms and two captives, while overseas insurance firms consists of eight conventional insurance firms and three reinsurance firms. In addition, there are a substantial number of firms restricted to business outside Bahrain and insurance ancillary services.
“The insurance sector in Bahrain holds tremendous promise for growth, as demonstrated by the industry’s strong performance not only during 2011 but also during the past five years” said Abdul Rahman Al Baker, Executive Director, Financial Institutions Supervision, at the CBB.
The Takaful industry continued to expand with overall gross contributions, of the firms operating in Bahrain, reaching BHD 40.19 million in 2011, up from BHD38.55 million in 2010, an increase of around four per cent.
“Bahrain is fast becoming a hub for major regional and international reinsurance and ReTakaful firms as evidenced by the increasing number of such firms that are established in the Kingdom,” said Al Baker.