Insurances - Bahrain

Bahrain

The Insurances market in Bahrain is projected to reach a gross written premium of US$2.37bn in 2024.
Non-Life Insurances dominates the market with a projected market volume of US$1.31bn in the same year.
The average spending per capita in the Insurances market is expected to amount to US$1.58k in 2024.
When comparing globally, the United States is expected to have the highest nominal value, reaching US$4,642.0bn in 2024.
Looking ahead, the gross written premium is anticipated to have an annual growth rate (CAGR 2024-2028) of 1.75%, resulting in a market volume of US$2.54bn by 2028.
In terms of global comparison, the United States is projected to generate the highest gross written premium in 2024, reaching US$4,642.0bn.
Bahrain's insurance market is witnessing a surge in demand for Sharia-compliant insurance products, reflecting the country's Islamic finance principles.

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Analyst Opinion

In Bahrain, the Insurances market is experiencing steady growth and development. Customer preferences in the market are shifting towards more comprehensive coverage options as individuals and businesses seek greater protection against various risks. This trend aligns with global patterns where consumers are becoming more risk-conscious and are willing to invest in insurance products that offer extensive coverage. Trends in the market show a rise in demand for innovative insurance products tailored to specific needs such as health, motor, and property insurance. Insurers in Bahrain are adapting to these trends by introducing new products and services to cater to evolving customer needs. Additionally, there is a noticeable increase in the adoption of digital platforms for purchasing insurance policies, reflecting a broader global shift towards online insurance services. Local special circumstances in Bahrain, such as the country's strategic location as a financial hub in the Middle East, play a significant role in the development of the Insurances market. The presence of a robust regulatory framework and a stable economic environment further contribute to the growth of the sector. Moreover, the government's initiatives to promote insurance awareness and penetration among the population are driving the expansion of the market. Underlying macroeconomic factors, including Bahrain's efforts to diversify its economy and attract foreign investments, are also influencing the Insurances market. As the country continues to focus on sectors like finance and tourism, there is a growing need for various insurance products to mitigate risks associated with these industries. The overall economic stability and growth prospects in Bahrain create a favorable environment for the insurance sector to thrive.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.