Bahrain Insurance Report Q1 2016
BMI View: Despite headwinds from general economic weakness triggered by low oil prices, Bahrain'sresilient insurance sector will continue to grow at 6-7% in both the life and the non-life sector. Welldevelopedby regional standards, the insurance market remains small by global standards. Healthinsurance is likely to be the key outperformer, with growth of 9-10% for the foreseeable future driven by keyregulatory changes mandating health cover for expatriates as well as Bahrainis.
Key Updates And Forecasts
In December 2015, the Central Bank of Bahrain released its report on the market in 2014, showing thelife sector underperforming expectations with a 9% contraction in gross premiums. We expect resiliencefrom the sector over the coming years, however, preserving a strong outlook to 2019.
The non-life sector delivered roughly as expected with growth at about 9%. Health insurance was the keyoutperformer with 19% growth, and remains our pick for medium-term growth prospects.
Strong updates from the Bahrain Bay development are a boon to property insurers as a successful projectwill create high-value property and shows demand for this kind of infrastructure project.
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