The Central Bank of Bahrain has revealed that the Bahrain insurance market experienced annual growth during 2014, with gross premiums and contributions increasing by approximately 5 percent over 2013 to register 270.76 million Bahraini dinar ($717.7 million) in 2014.
The rise was attributed to an increase in medical insurance, which has risen from BHD 40.83 million ($108.2 million) in 2013 to BHD 48.59 million ($128.8 million), showing an increase of 19 percent and representing almost 18 percent of the total premiums and contributions written in the insurance market in 2014.
The takaful industry in Bahrain generated gross contributions amounting to BHD 57.29 million ($151.84 million) in 2014 compared to BHD 57.22 million ($151.66 million) in 2013. They represent around 21 percent of the gross premiums and contributions in 2014.
By end of 2014, Bahrain's domestic insurance market comprised of 25 locally incorporated firms and 11 overseas insurance firms carrying out insurance, reinsurance, takaful, retakaful and captive business in Bahrain.
Abdul Rahman Al Baker, executive director of financial institutions supervision at the Central Bank of Bahrain, commented: "The insurance sector in Bahrain holds tremendous promise for growth, as demonstrated by the industry’s strong performance not only during 2014 but also during the past five years.”
He added: "Bahrain is fast becoming a hub for major regional and international reinsurance and retakaful firms as evidenced by the number of such firms that are set up in [Bahrain].”
