Bahrain has seen double-figure growth for its private medical insurance (PMI) industry over the last six months, according to latest figures from the Central Bank of Bahrain (CBB).
That growth has driven the overall growth of the insurance sector in Bahrain.
Total gross premiums for medical insurance increased from BD 46.78m (£100m) in the six months ended 30 June 2022 to BD 52.31m (£112m) in the same period of 2023. That represented an increase of about 12%.
Medical insurance is the largest in terms of total gross premiums which represented around 35% of the total gross premiums written in Bahrain for the period ended 30 June 2023.
Bahrain is scheduled to soft-launch to the expatriate market a mandatory Health Insurance Law later this month.
Overall, the insurance industry showed steady results for the six months ended 30 June 2023.
Gross premiums (conventional and Takaful) generated in the domestic market amounted to BD 151.49m (£324m) in the six months ended 30 June 2023 compared to BD 146.86m (£314m) in 2022, showing a growth rate of around 3.1%.
Takaful is a type of insurance system devised to comply with Islamic sharia laws, in which money is pooled and invested.
The general insurance business, including medical insurance, contributed around 90% of the gross premiums written for the same period of 2023.
Abeer Al Saad, executive director of financial institutions supervision at the CBB, said: “The insurance sector in the Kingdom of Bahrain has seen growth in the gross premiums, driven by a rise in health insurance.
“Moreover, the insurance sector in the Kingdom of Bahrain provides a fertile ground for local and international companies to innovate and drive transformative change to provide insurance solutions to meet the evolving needs of individuals and companies in light of the digital development in the financial sector in general.
“Raising insurance awareness and need will positively affect the insurance sector, and we urge companies to go beyond traditional approaches to provide services and explore innovative solutions to enhance the work efficiency and gain a competitive advantage.”
Elham Taleb, director of insurance supervision at the CBB, said: “The insurance sector in the Kingdom of Bahrain is undergoing a transformative journey with the implementation of the international standard IFRS17 and many other initiatives launched by the Central Bank of Bahrain in cooperation with several entities.
“The initiatives affirm commitment and urge to advance the industry standards and ensure financial transparency with a focus on innovation, customer-centricity, and sustainability.
“Therefore, the insurance sector in Bahrain is poised to deliver enhanced services, increase insurance awareness and growth in the sector under an encouraging regulatory environment.“