Insurance
From The Report: Bahrain 2015
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Bahrain boasts the highest insurance penetration rate in the GCC at 2.3% of the population. This is a result of its comparatively long insurance history, the clear regulation in place and the large number of companies involved in the sector. Motor insurance remains the primary source of revenue and claims within the sector, with motor lines representing almost 26% of premiums and contributions written in the market in 2012. A regulatory regime that allows for the free movement of capital and 100% foreign ownership of companies, as well as the availability of a highly skilled workforce has attracted many international insurance providers to set up shop in Bahrain. Moving forward the takaful segment is expected to play an increasingly prominent role in the sector, with new regulations being introduced to govern the framework of the segment and with international trends indicating that takaful’s global value will reach $17bn by 2015.

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Overview

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Compared with many of its peers in the GCC that remain largely dependent on hydrocarbon revenues, Bahrain has a relatively diversified economy. The country pioneered the development of new economic sectors that are now common throughout the Gulf. Bahrain was the first GCC state to begin oil exports in 1934 and later became the first in the region to develop into a financial centre, starting in the 1970s. The parallel development of a vibrant insurance sector has helped limit the risks involved in…

Analysis

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Infrastructure work in the MENA region worth $87.6bn in 2013 – the largest regional total for project financing that year – means big business for reinsurance providers that can shoulder the risk for such financing needs. Following the example of island nations such as the Bahamas and Singapore, Bahrain has ambitions of becoming an important regional reinsurance centre. With a strong financial sector, including trend-setting Islamic financial services, the kingdom is well placed to exploit its…