Bahamian Insurance Industry Poised to Witness Growth Driven by Positive Economic Momentum
Posted on 27 July 2016 by KenResearch Banking Financial Services and Insurance,
Ken Research has announced its latest publication on,‘The Insurance Industry in The Bahamas, Key Trends and Opportunities to 2019’which provides thorough information and insights into the Bahamian insurance industry. A detailed overview of the demographics and economic factors are included thereby bringing out the major driving factors in the Bahamian insurance sector. Additionally, a comprehensive outlook of the competition, regulatory framework, distribution channels and natural hazards within the insurance industry of the Bahamas is also included in this research report.
The Bahamian insurance industry is currently reveling under the positive economic momentum caused by its proximity to the US and the Government’s initiatives to boost infrastructure and tourism. The factors which are driving growth in the Bahamian insurance sector include competitive pricing, friendly regulations and the requirement for sophisticated tax compliant wealth management structures. In addition, the presence of restricted predatory competition also allowed capital accumulation which is further being used for upgradation of technology in the sector. As a result, in the Bahamas, the insurance firms tend to have a competitive edge over other financial institutions. The report signify performance of Bahamas Health Insurance Industry Development and Reinsurance Market Forecasts.
The domestic insurance market in Bahama is both diverse and vibrant with ongoing efforts to capitalize on the external market through international captives and insurances Historical record has also revealed that the Bahamian insurance sector have been growing at a CAGR of 4.7% over the past five years. The domestic insurance sector in Bahamas can be further segmented in to ‘life’ and ‘non-life’ sectors. Both these sectors are represented and regulated by two primary trade associations including the Bahamas Association of Life and Health Insurers (BALHI) and the Bahamas General Insurance Association (BGIA), respectively. Growth within the non-life segment of the Bahamian insurance market over the past five years was governed by expansion of the tourism industry, which in turn is due to increased spending on high-value construction project such as resorts, casinos and hotels, according to Ken Research Analyst.
In addition to domestic insurance sector, the outlook for international insurance in the Bahamas is also positive. Life Insurance Premium Written Report is based on assessment which helps to understand growth pattern which can be attributed to the establishment of financial services industry that sought new wealth management tools aligned with the changing market/regulatory conditions worldwide. As of now, a large number of leading international banks have established base in Nassau and are proactively involved in both international life insurance and captives. Overall, it is projected the Bahamian insurance industry will witness fast growth over the coming five years.
The Global Insurance Industry
The global economy has begun to recover and is projected to strengthen moderately over the next five years. This is expected to support expansion of the worldwide insurance sector. The demand for both life and non-life insurance is expected to increase with emerging economic regions such as Asia-Pacific to remain as key drivers. For instance, the growth of premium insurance is projected to be the strongest in emerging Asia, according to Ken Research Analyst.
Some of the prominent trends of the global insurance industry are:
- Constantly evolving regulatory framework
- Steady upgradation of technology around various insurance segments
- Sophistication of risk management techniques
- Better risk monitoring
- Insurance companies are increasingly using data analytics to enhance profitability
Key Topics Covered in the Report:
- Detailed economic and competitive landscape of the Bahamas
- Overview of the Bahamian insurance industry
- Outlook of distribution channels within the Bahamian insurance industry.
- Detailed profiles of leading players in the Bahamian insurance industry
- Governance, risk and compliance within the insurance marker of Bahamas
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Ankur Gupta, Head Marketing & Communications