Insurance & Reinsurance
From The Report: Bahrain 2016
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For decades Bahrain has been home to one of the GCC’s most developed insurance sectors, with domestic and international firms taking advantage of the country’s robust yet accommodating regulatory structure to pursue business both locally and in rapidly emerging regional markets. Some 25 locally incorporated insurers operate in Bahrain, with a further 22 locally incorporated firms restricted to pursuing business outside Bahrain. However, a penetration rate of around 2.1% in the local market, compared to rates of around 8% in more developed European markets, suggests that there is still room for further domestic growth. Meanwhile, the number of reinsurance firms licensed to operate from Bahrain has been increasing steadily since 2006, with five conventional players currently established. The segment has also begun to tap into the demand for sharia-compliant cover.

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Overview

Lead position: By capitalising on its expertise in the sector, Bahrain is consolidating its reputation as a key regional insurance player
OBG
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For decades, Bahrain has been a regional centre for insurance, with domestic and international firms taking advantage of the country’s robust yet accommodating regulatory structure to pursue business both locally and in rapidly emerging regional markets. The nation’s insurance industry faces increased competition on two fronts: at home, a crowded market makes for one of the most competitive insurance arenas in the GCC, while on a regional level the development of regulatory frameworks around…

Analysis

All together now: The major insurance centres of the Gulf are exploring regulatory harmonisation
OBG
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In February 2015 the leading participants in the region’s insurance market came to Bahrain for the Middle East Insurance Forum, an annual event which has become the largest and most influential industry gathering in the Gulf. Staged under the official patronage of the Central Bank of Bahrain (CBB), the event attracted around 500 attendees, from over 200 leading global organisations, to listen to more than 50 international speakers and industry leaders. Growing Alignment As the host of the 2015…

Analysis

Playing to its strengths: The growth of reinsurance activity in Bahrain is supported by a robust regulatory system
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The large amount of business ceded by Gulf insurers to domestic, regional and global reinsurers has, for many years, been a hot topic in the sector. The downside risks of this market characteristic are frequently rehearsed at industry conferences and regulatory seminars: Middle Eastern insurers, it is argued, have grown accustomed to the easy commissions made while passing business on to reinsurers and have little appetite for higher retention and its associated risk. The consequence of this is that…