Bahrain- Insurance sector records 100% growth in five years 

(MENAFN - Bahrain Tribune) Bahrain's insurance sector has witnessed 100 per cent growth over the past five years or 20 per cent consistent growth a year since 2002, making it one of the vibrant sectors within the financial sector.

The total gross insurance premiums in Bahrain rose to BD136 million at year end of last year compared to BD112 million in 2006, a senior official at Central Bank of Bahrain (CBB) said.

Abdul Rahman Al Baker, CBB executive director of financial institutions supervision, said total assets of insurance firms increased by 41.8 per cent and reached BD966 million last year with the total number of insurance firms reaching 164.

In his presentation entitled "The Impact of a Compulsory Healthcare Insurance Scheme for Expatriates on the Insurance Industry in Bahrain" at the opening session of the two-day compulsory health-insurance workshop, the executive director said the robust regulatory framework and even playing field have helped in attracting many leading companies to set up businesses in the Kingdom.

Organised by the Bahrain Insurance Association (BIA), the event is being held in Bahrain under the patronage of Minister of Health Dr. Faisal bin Yacoub Al Hamer who yesterday opened the workshop at Moevenpick Hotel. The Minister assured all stakeholders on continuous ministry co-operation in making this national project a success and result oriented.

"Compulsory medical insurance will have a profound impact on gross premiums of the insurance sector which are projected to reach BD 190 million by 2015 from BD 11.6 million last year. The implementation of compulsory insurance for expatriates will reduce the burden on the government budget.

"It will enhance the efficiency of health services provided by the government to residents," Al Baker underlined, "and enhance growth in the healthcare market." Yunis Jamal, BIA director life, medical, said: "The Bahrain insurance market has continued to grow and evolve, and accomp-anying the insurance sector's expansion we have witnessed the strongest-ever annual growth two years ago, with gross premiums surging by 22 per cent over 2005.

"The profitability of insurance firms rose by 27 per cent while their total assets grew by 22 per cent. Miscell-aneous insurance—which includes medical, among other components—generated gross premiums worth BD 24.5 million two years ago, up from BD 20.7 million in 2005.

"Part of BIA's role," pointed out Jamal, "is to support CBB in monitoring and analysing key industry trends and developments. The workshop represents a vital step towards elevating the standard of the Kingdom's healthcare sector which simultaneously represents a lucrative market which has tremendous untapped potential."

During the workshop many important healthcare sector topics and development opportunities in the Kingdom of Bahrain are being discussed. "Furthermore, we will compare the experience of mandatory health insurance among Gulf states.

"Respective speakers from Kuwait, Saudi Arabia and Abu Dhabi are here to share with us their experience and views on different aspects of the system. This will definitely help concerned authorities in considering an appropriate model of the proposed system in the Kingdom of Bahrain," Jamal said.

"Furthermore, we will hear a range of views and expert opinions including that of:the Ministry of Health, CBB, the Labour Market Regulatory Authority, the Ministry of Commerce, Economic Development Board, private hospitals and insurance companies. This workshop is also focusing on the finalisation and submission of a proposal for a compulsory healthinsurance system in the Kingdom of Bahrain, in addition to determining a timeframe for the application of the compulsory health-insurance system."