MANAMA: The GCC insurance industry value has more than tripled between 2006 and 2015, with insurance premiums increasing to $24 billion in 2015 compared with $6.4bn in 2006, said a top bank executive yesterday.
Central Bank of Bahrain executive director for financial institutions supervision Abdul Rahman Al Baker was speaking at the 20th Association of Insurers and Reinsurers of Developing Countries Conference themed “Transforming the Insurance Industry in Developing Countries”.
Economies of developing countries have expanded at a healthy rate over the last decade and have made a significant progress, he said.
“The GCC insurance industry has more than tripled between 2006 and 2015. This represents a compound annual growth rate of around 16 per cent over the period.”
“As of August, licensed insurance entities in Bahrain reached 150. The total gross premiums, as of the end of 2015, reached BD273 million compared with BD95m in 2005, an average growth of almost 20pc per annum.”
Overall, the percentage of general insurance business represents almost 80pc of the total premiums, while the life insurance represents the remaining balance. This outstanding growth was mainly due to the increase in the economic growth and the remarkable growth in life insurance, Takaful and Medical Insurance in Bahrain during the past 10 years, Mr Al Baker said.
“One of the insurance classes that contributes positively to the insurance market in Bahrain is Takaful, which shows an average growth in gross premiums of around 70 per annum during the past 10 years.
“The CBB, in collaboration with the Bahrain Insurance Association, has been holding Insurance Week to educate the public on the importance of insurance services. It has been successful in enhancing insurance awareness amongst people. It aims to further increase the penetration rate of insurance.”