Life insurance in Bahrain faces declining demand despite growing sector

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Email: ashen@newsofbahrain.com

A recent decline in life insurance policy purchases in Bahrain has raised concerns among industry experts. According to a report by the Central Bank of Bahrain, life insurance premiums dropped by 31.82% in the first six months of 2023 compared to the same period in 2022.

This contrasts with a rise in premiums for other insurance types, such as health insurance (12%) and car insurance (8%). Insurance expert Fathallah Ibrahim attributes the decline to a lack of awareness among consumers regarding the benefits of life insurance as a safety net for themselves and their families.

He emphasises that life insurance provides financial security and stability for policyholders and their families, particularly in the event of unforeseen circumstances.

“Life insurance not only benefits families directly, but also has a positive impact on government spending and social welfare. Families with life insurance policies have a continuous source of income to cover healthcare, education, and other essential needs, reducing the burden on public resources,” Ibrahim said.

Financial goals

He added: “Life insurance is more than just a safety net; it’s a versatile tool for achieving financial goals.

From education planning and retirement planning to investment, wealth creation, and even financial planning for SMEs and family businesses, life insurance can play a crucial role.” Despite the challenges faced by life insurance, the overall insurance sector in Bahrain has witnessed significant growth, both in terms of quantity and quality.

The introduction of new insurance products, including those with a social impact, such as health insurance, has contributed to the sector’s expansion.

Market

Health insurance, in particular, continues to dominate the market, accounting for approximately 35% of total insurance premiums in the first six months of 2023.

Ibrahim believes that insurance companies should focus on developing and launching value-added insurance products that cater to the needs of citizens and address emerging risks.

He stressed the importance of collaboration between insurance companies, insurance regulators, banks, healthcare providers, and civil society organizations to maximize the benefits of these services and products.