The insurance market in Bahrain continued to grow during 2005, in keeping with the growth trend of recent years, according to Bahrain Monetary Agency (BMA) figures.
Gross premiums generated in the domestic market for 2005 amounted to BD94.9 million (US$251 million), an increase of 5.4% over the 2004 figure of BD90.1 million (US$238.4m).
Gross claims, however, surged by 26.8% to BD47.5 million (US$126m) in 2005, from BD37.5 million (US$99.2m) the previous year.
The domestic market comprised 19 insurance companies carrying out direct insurance business in Bahrain in 2005. The companies comprised 11 locally incorporated firms and eight branches of foreign firms.
“The climate for insurance services continues to improve in Bahrain and the region,” said Mr. Abdul Rahman Al Baker, Executive Director, Financial Institutions Supervision, at the BMA.
“Robust economic growth, renewed Government investment in large infrastructure projects and strong private sector investment in real estate and other economic sectors are contributing to the expansion of the insurance sector. In addition, increasing public awareness and acceptance about the need for insurance is also contributing to the growing demand for insurance products, both conventional and Islamic,” he added.