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BMI View: Although relatively small by global standards, Bahrain's insurance sector is well developed in
comparison with its regional counterparts and is home to various indigenous and multinational providers.
The larger non-life segment, in particular, is highly diversified and competitive, and is consequently likely
to see some degree of market consolidation as this market remains an attractive destination for foreign
direct investment. Moreover, with the high income levels among Bahraini households as well as the
expanding and sizeable expatriate population, both the life and non-life should see robust demand over the
next five years. Transport lines in particular, however, will see limited growth due to their heavy reliance
on the country's oil economy.
Key Updates And Forecasts
? Accounting for only 21% of total premiums written in 2016, we expect Bahrain's life insurance segment
to expand by 7.5% in this year to USD173mn. Over the long term, life insurance should grow at an
average annual rate of 5.6% to USD216mn in 2020.
? With nearly 80% market share, non-life insurance constitutes the larger segment of Bahrain's insurance
sector. Non-life insurance is forecast to grow by 6.9% over 2016 to USD640mn. By 2020, life premiums
should amount to USD839mn.
? Critical growth drivers over the coming five years include the ongoing expansion of the expatriate
community, which constitutes a major customer base to both life and non-life providers. As the Bahraini
government is moving towards including expats in the compulsory health insurance scheme, especially
providers of these policies will see a strong uptick in demand. Furthermore, the rising disposable incomes of Bahraini households will push demand for products such as motor vehicles, which in turn will lead to
growing demand for the relevant insurance policies.