Mr. Fathalla Ebrahim, an insurance expert, confirmed that the growth of the insurance sector in Bahrain and its commendable performance in terms of total insurance premiums for the first half of 2023 reflects the strength and economic stability of the Kingdom of Bahrain. It also reflects the Kingdom’s fostering of a fertile environment for the flourishing insurance sector as a result of its position as a leading economic centre in the Middle East and the region.
He noted that during the first six months of 2023, Bahrain’s insurance sector has made significant strides, with total insurance premiums amounting to BD151.49 million compared to BD146.86 million during the same period in 2022, marking a notable 3.1% increase. This data was recently released by the Central Bank of Bahrain.
Mr. Ebrahim pointed out that the sector has achieved both qualitative and quantitative growth, evident in the enhanced insurance coverage brought about by the introduction of various insurance products. Notably, these include products with a societal dimension, such as medical insurance, which has played a substantial role in driving sector growth and extending the social safety net. Medical insurance continues to lead in terms of its contribution to the total premiums, accounting for approximately 35% of the overall premiums for the six months ending on June 30, 2023, according to the Central Bank of Bahrain’s official report.
He further emphasized that the current landscape of the insurance market necessitates companies operating in this sector to introduce innovative insurance products that bring added value, aligning with the evolving needs of citizens while addressing both existing and emerging risks. This strategic approach not only fortifies their financial standing but also optimizes the utility of these services and products, provided they are offered through collaborative partnerships. Such alliances should be forged between insurance companies, regulatory bodies, and other stakeholders, including banks, healthcare service providers, and community institutions.
“The growing appeal of insurance plans across different categories among residents of the Kingdom of Bahrain and the GCC countries is a testament to the increasing recognition of the vital role that financial protection and insurance play in mitigating risks and providing security against unforeseen contingencies. Consequently, these markets are witnessing a surge in demand as more individuals proactively prepare for unexpected circumstances.”
Mr. Fathalla concluded by affirming the significance of the insurance sector and insurance brokers within the economic landscape, highlighting their substantial contribution to the national economy as value-added components. They serve as pivotal catalysts for economic growth, offering a wealth of promising opportunities. Furthermore, they stand as the foremost guardians of savings, providing indispensable protection for investments and fostering an investment-friendly environment.