Insurance

Bahrain boasts the highest insurance penetration rate in the GCC at 2.3% of the population. This is a result of its comparatively long insurance history, the clear regulation in place and the large number of companies involved in the sector. Motor insurance remains the primary source of revenue and claims within the sector, with motor lines representing almost 26% of premiums and contributions written in the market in 2012. A regulatory regime that allows for the free movement of capital and 100% foreign ownership of companies, as well as the availability of a highly skilled workforce has attracted many international insurance providers to set up shop in Bahrain. Moving forward the takaful segment is expected to play an increasingly prominent role in the sector, with new regulations being introduced to govern the framework of the segment and with international trends indicating that takaful’s global value will reach $17bn by 2015.