BMI's Executive Summary for the Bahrain Insurance Report

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This report differs from its predecessors in that it includes BMI's Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI's Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

Bahrain's IBER is 52.7. Relative to other countries in Middle East and Africa, it is a moderately attractive insurance market for foreign insurers. Within the region, Bahrain stands out for the Regulatory Framework and Country Risk Factor. The strong country structure also contributes to Bahrain's IBER. Government policies are likely to remain constant over the long-term, and the GDP per capita is score. The IBER is significantly held back by the underdevelopment of the life and non-life segments and the financial infrastructure. Although openness to new entrants is low, 5 out of 10, it is higher than others in this region.

Over the forecast period, we anticipate that non-life premiums will grow by 15% annually in local currency and US dollar terms. Life premiums are expected to increase by 13% annually in local currency and US dollar terms. The key drivers of growth in the non-life segment in 2007-2012 are the anticipated rise in nominal GDP from around US$16.39bn to US$22.92bn and an expected increase in non-life penetration from 1.78% of GDP to 2.5%. The key drivers of growth in the life segment are the envisaged rise in life density from US$92.46 per capita in 2007 to US$150 per capita in 2012.

The non-life market is small, but not closed to foreigners. Simple arithmetic suggests that at least some of the four identifiable cross-border groups have significant market shares. We doubt that many other crossborder firms will attempt to enter the tiny Bahrain life market. Cross-border distribution of life products is harder than cross-border distribution of non-life products. The identities of the various firms that hold licences for offshore business in Bahrain indicate that very few firms, if any, see the country as a suitable base for offshore life business. Indeed, the limited absolute size of the market opportunity means that it is unlikely that additional local firms will enter the segment.

Bahrain has a strong Country risk factor, supported by a very low financial risk. The economy is more diversified than Gulf peers. Bahrain is a regional financial hub, with a well-developed banking sector. Inflation is low and the pegged currency eliminates exchange-rate risk.

Planned labour market reforms will increase the visa fee employers need to pay for expatriate workers, and will introduce a new tax on expatriate workers (to replace quotas). Tax concerns weaken the IBER for Bahrain.

Contents of the Bahrain Insurance Report

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Chapter 1 - The Sector At A Glance

Table: Overview

Key Features Of This Report & Likely Future Changes

Chapter 2 - Latest News

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Evolution of the Insurance Sector (in millions of currency specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: BMI Projections (in millions of currency specified)

Table: Drivers of Growth

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: Bahrain - Economic Activity

Chapter 6 - Country Update

Political Risk Al-Wefaq To Gain In Elections

Economic Risk Spending Rises

Business Environment Labour Reforms

Chapter 7 - Analysis of Competitive Conditions

How to read the tables

Table: Non-Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Non-Life

Table: Selected Local Non-Life Insurers

Table: Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Life

Table: Selected Local Life Insurers

Chapter 8 - Regional Context

Table: Regional Context premiums

Table: Regional Context Total premiums

Chapter 9 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 10 - Appendix

Table: Latest Estimates / Actual Figures For 2005

Table: Latest Estimates For 2010

Table: Latest Estimates For 2005-2010

Competitive Landscape for The Middle East and Africa Insurance
    Reports: Sample of Companies Ranked

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A cross-border overview of key players and their insurance market share across the Middle East and Africa. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's Middle Eastern and African Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports