The Central Bank of Bahrain (CBB) will soon set a minimum price for comprehensive car insurance, the Executive Director of Financial Institutions Supervision at CBB, Abdulrahman Al-Baker, revealed. He added that this comes in a move by the CBB aimed at further regulation into the market as part of a consolidated agreement that is being prepared in cooperation with insurance companies. The agreement, he stated, will be formally approved during the third quarter of this year.
Al-Baker said that the CBB has published an advisory document on insurance platforms to market insurance policies on the Internet and that a global company has applied for the launch of this service in the local market soon.
Being asked by reporters about the impact of technology on the insurance sector in Bahrain and the region, Al-Baker explained that the successive changes encourage insurance companies to adopt technology to increase product distribution channels and increase market size especially, he added, the new generation and existing customers who believe that the use of technology is better than going to the branches and line up in long queue.
“I think technology will help increase the size of the market and give customers some confidence in the completion of transactions at any time, not just in the basic working hours,”
Al-Baker assured that the CBB has worked on a number of initiatives, including the Intermediation Platform initiative, which will benefit both the insurance companies and the customers themselves. He added that through those e-mediation platforms, the market and through which the customer can view the prices of insurance policies and benefits and annual installments provided.
He concluded that this would provide a greater opportunity for comparison between companies and policies and then take the appropriate decision for the customer. He said that it was also possible to pay the value of the policy directly through these platforms.