Just Published: "Bahrain Insurance Report Q2 2015"
Fast Market Research recommends "Bahrain Insurance Report Q2 2015" from Business Monitor International, now available
[USPRwire, Fri Feb 06 2015] We think that total insurance premiums will rise broadly in line with nominal GDP in Bahrain in 2015-2019. Strong growth in health insurance premiums will be offset by challenges elsewhere. Nevertheless, recent developments have been mostly positive. Wildcards can be identified and are generally consistent with a more rapid, rather than a slower, expansion in premiums through the forecast period.
Over the forecast period, total insurance penetration in Bahrain is likely to remain broadly unchanged at 2.1% of GDP. In essence, premiums appear set to rise broadly in line with nominal GDP over the period to 2019. The lack of growth in penetration - and moderate rise in density - from levels that are fairly low by global norms highlights that sector faces a number of challenges. Total premiums appear set to rise from USD780mn in 2015 to USD1,010mn in 2019.
In the life segment, the main problem appears to be the low probability that the insurers reach new clients. They are already established as providers of protection and savings solutions to the expatriate workers on whom the economy is dependent. As is the case in other Gulf Cooperation Council (GCC) countries, the non-resident Indians (NRIs) represent a substantial market opportunity. The expatriates do not have to save via life insurance: they may, for instance, prefer to invest in real estate in their home countries. Meanwhile, persistently low interest rates mean that it is harder than, say, 10 years ago for the insurers to develop products that offer attractive risk adjusted real returns.
The non-life segment will, we think, drive the growth of the overall sector. It is likely to benefit from the comparatively rapid expansion of health insurance which, in turn, is being driven by the recent introduction of compulsory covers. In the meantime, overcapacity (in Bahrain as in much of the world) is likely to result in downwards pressures in prices, especially in basic motor vehicle and property lines....
The Bahrain Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Bahrain Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Bahraini insurance industry.
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