Despite the recent financial turmoil, the insurance sector in Bahrain has continued its double digit growth in both the conventional and takaful markets.

That was the message from Central Bank of Bahrain (CBB) executive director financial institutions supervision Abdul Rahman Al Baker in his opening speech to the two-day Sixth Annual Gulf Insurance Forum at the Gulf Hotel.

"Following an annual increase of gross premiums of 34 per cent for the 2008 year end, we have seen a continuing growth trend for 2009 with a 9pc growth as of the end of June compared to the same period in the previous year," he said.

"Gross premiums for the takaful sector have increased 37pc to BD18 million ($47.8m) as of the end of June.

"Currently, takaful gross premiums account for almost 18pc of total premiums, up from 14pc a year ago.

"Medical insurance as well as life insurance have also contributed significantly to this growth in overall premiums.

"While underwriting results have continued their positive trends, the insurance firms needs to closely monitor their returns on investment, in order to ensure that they will continue to meet their liquidity and financial obligations towards their policyholders," he added.

"We at the CBB believes that sound insurance markets need to have appropriate regulatory framework, adequate accounting standards and a strong supervisory infrastructure, and proper corporate governance that should be long-term oriented focusing not only on shareholders returns, but also on protecting policyholders.

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