Bahrain – A call for floating motor insurance rates
Wednesday, 05 13 2015, Category: Insurance and Reinsurance, Country: Bahrain
Bahraini insurance company officials have stated that the number of insurance companies in the Bahraini market has become too large for such a small market and they are experiencing moderate growth. This calls for the floating of auto insurance rates.
During talks with the press on the sidelines of an annual meeting that brings together insurance leaders and officials hosted by Mr. Ali Al-Dailami at his residence in Saar, insurance companies mentioned that rates have declined in the last few years, especially in motor and health insurance, competition has increased and cases of aggressive price competition have been witnessed.
Also, insurance companies’ investment activities are generating higher revenues compared to core insurance business activities due to the increased frequency of claims especially in the motor line of business.
On the other hand, insurance sector officials have said that there are several options available to Bahraini companies to meet the new capital adequacy requirements issued by the Central Bank of Bahrain such as consolidations, borrowing, increasing their capital or even liquidating the company. However, most companies are meeting requirements and are in a strong and solid position.
They also pointed out that the implementation of the compulsory health insurance law that Bahrain has been studying for several years on hundreds of thousands of foreign workers would bring in revenues for Bahraini insurers and improve their financial performance amid intense competition in a small market replete with insurance companies.
Source: Al Wasat