Bahrain witnessed a notable increase in gross insurance premiums in the first half (H1) of 2023, totaling BD151.49 mn ($402 mn). This marks a 3.1 percent growth from 2022’s BD146.86 mn. According to the Central Bank of Bahrain (CBB), general insurance, including medical insurance, accounted for around 90 percent of gross premiums written during the same period in 2023.
Bahrain’s insurance sector
Medical insurance, the largest contributor to Bahrain’s total gross insurance premiums, particularly saw a significant increase. It rose from BD46.78 mn in H1 2022 to BD52.31 mn in H1 2023, reflecting a growth rate of about 12 percent. Medical insurance specifically accounted for 35 percent of the total gross premiums written during this period.
On the other hand, the motor insurance category experienced an eight percent increase in total gross premiums. It grew to BD38.89 mn coming from BD36.06 mn in H1 2022. Motor insurance was the second-largest class of insurance in terms of gross premiums, representing around 26 percent.
Long-term insurance, including life insurance and savings products, generated gross premiums amounting to BD15.90 mn in H1 2023. This marks a decline from BD23.32 million in the same period of 2022.Â
Meanwhile, contributions from Takaful firms reached a total of BD46.67 mn in the first six months of the year, compared to BD41.30 mm during the same period in 2022. Takaful is a form of Islamic insurance wherein participants contribute funds to create a pool that offers protection against losses or damages.
“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 at CBB’s financial institutions supervision department.
Read: Financial inclusion in the Middle East
More GCC countries see insurance sector growth
Bahrain is not the only country in the Gulf Cooperation Council (GCC) that recorded a strong performance in its insurance sector.Â
In 2022, Saudi Arabia posted an impressive growth rate of 26.9 percent. The total written premium in the said year stood at SR53 bn, up from SR42 bn in 2021. This data is according to the 16th annual report on the insurance market released by the Saudi Central Bank, also known as SAMA.
In Kuwait, insurers operating in the country achieved a 7.9 percent growth in their overall turnover in 2022. Written premiums increased from KWD526.928 mn KWD in 2021 to 568.56 mn KWD in the following year.Â
Furthermore, a report from GlobalData revealed that the general insurance market in the United Arab Emirates is poised to expand by 13.2 percent in 2023. Last year, this market made up 82.3 percent of the country’s conventional insurance sector.
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