The coronavirus crisis has made the financial market very volatile and this could negatively impact the solvency levels of insurers in Bahrain this year, according to global credit rating agency AM Best’s latest report.
The report called Covid-19 Adds to Challenges for Bahrain’s Fragmented Insurance Market highlights that the Bahraini reinsurance market is highly competitive since a large number of insurance firms in the country are vying for a limited amount of premium. The report further notes that since exposures to equities and real estate are generally higher among Bahraini insurers, their performance is heavily influenced by investment results and are prone to financial market volatility.
Last month, Bahrain National Insurance (BNI) launched protection against coronavirus. Their new insurance product aims at offering employers the opportunity to ensure their employees’ financial and emotional well-being.
BNI’s assistant general manager Rayan Al Mahmood told the media, “This group policy is expected to be useful to various private and public establishments for covering Covid-19 related medical needs of their employees. It will also be beneficial for various categories of frontline workers as groups. While most firms plan for emergencies that impact business continuity, the Covid-19 pandemic has caught many off guard.”
Last week, insurance provider Solidarity Bahrain announced its cyber risk protection and incident response services. This latest product will help Solidarity’s customers protect themselves against financial losses arising out of cybercrimes.
According to the company, it is the first insurer to offer personal cyber insurance in Bahrain. Solidarity Bahrain said that its new product will enable its customers to secure their data while transacting and interacting through online channels. In addition, it will help protect them from identity theft and online shopping fraud.