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  • TC-1.1 TC-1.1 Controlled Functions

    • TC-1.1.1

      Individuals occupying controlled functions (refer to Section AU-1.2) in an insurance licensee must be qualified and suitably experienced for their specific roles and responsibilities. The approved persons are those of:

      (a) Board Member/ Director;
      (b) Chief Executive Officer or General Manager and their Deputies;
      (c) Chief Financial Officer and/or Head of Finance;
      (d) Compliance Officer;
      (e) Chief Risk Officer/ Head of Risk Management;
      (f) Head of Internal Audit;
      (g) Internal Shari’a Reviewer (where applicable);
      (h) Head of Underwriting;
      (i) Head of Claims;
      (j) Head of Sales and Marketing/Head of Business Development
      (k) Heads of other Functions (including IT and HR functions);
      (l) Money Laundering Reporting Officer/ Deputy Money Laundering Reporting Officer;
      (m) Unit-linked investment adviser (where applicable); and
      (n) Signing Actuary (where the function is undertaken by a Director or an employee of the insurance firm).
      Added: October 2020

    • TC-1.1.2

      An insurance licensee must take reasonable steps to ensure that individuals holding controlled functions are sufficiently knowledgeable about their respective fields of work to be able to guide and supervise operations that fall under their responsibilities. Competence must be assessed on the basis of experience and relevant qualifications described in Appendix TC-1 as a minimum. However, the CBB reserves the right to impose a higher level of qualifications as it deems necessary.

      Added: October 2020

    • Board Member/ Director

      • TC-1.1.3

        Board members/ Directors collectively are responsible for the business performance and strategy of the insurance licensee, as outlined in more details in Section HC-1.2.

        Added: October 2020

      • TC-1.1.4

        When taken as a whole, the board of directors of an insurance licensee must be able to demonstrate that it has the necessary skills and expertise, as outlined in Paragraphs HC-1.2.4.

        Added: October 2020

    • Chief Executive Officer or General Manager and their Deputies

      • TC-1.1.5

        The Chief Executive Officer or General Manager and their deputies (as appropriate) is responsible for the executive management and performance of the insurance licensee within the framework or delegated authorities set by the Board, and is outlined in more details in Paragraph HC-6.3.4.

        Added: October 2020

    • Chief Financial Officer/ Head of Finance

      • TC-1.1.6

        The Chief Financial Officer/Head of Finance is responsible for directing the insurance licensee’s financial function, including ensuring that the relevant accounting treatment is applied to all of the activities of the insurance licensee in a timely manner. The scope of authority of the CFO/ Head of Finance is outlined in more detail in Subparagraph HC-6.3.2 (b).

        Added: October 2020

    • Compliance Officer

      • TC-1.1.7

        In accordance with Paragraph AU-1.2.11A, an employee of appropriate standing must be designated by insurance licensees for the position of compliance officer. The duties of the compliance officer, who must have Bahraini residency, include:

        (a) Having responsibility for oversight of the licensee’s compliance with the requirements of the CBB; and
        (b) Reporting to the licensee’s Board in respect of that responsibility.
        Added: October 2020

    • Chief Risk Officer/ Head of Risk Management

      • TC-1.1.8

        The Chief Risk Officer/ Head of Risk Management is responsible for the management and control of all risk exposures arising from the activities of the insurance licensee.

        Added: October 2020

    • Head of Internal Audit

      • TC-1.1.9

        The Head of Internal Audit is responsible for providing independent and objective review on the adequacy and effectiveness of the holistic internal control environment within the insurance licensee. The duties of the head of internal audit are outlined in more detail in Subparagraph HC-6.3.2 (d).

        Added: October 2020

    • Internal Shari’a Reviewer

      • TC-1.1.10

        The Internal Shari’a reviewer in an insurance licensee, dealing with Islamic products and services, is responsible for the examination of the extent of an insurance licensee compliance, in all its activities, with the Shari’a. This examination includes contracts, agreements, policies, products, transactions memorandum and articles of association, financial statements, reports (especially internal audit and central bank inspection), circulars etc. The objective of the internal Shari’a review is to ensure that the activities carried out by an insurance licensee do not contravene the Shari’a. This role is outlined in more detail in Paragraph AU-1.2.11B.

        Added: October 2020

    • Head of Underwriting

      • TC-1.1.11

        The Head of Underwriting function is involved in portfolio analysis and to manage the underwriting process such as risk assessment, pricing and negotiation with the broker or clients. The Head of Underwriting should ensure effective oversight and guidance of underwriting risk in line with the insurance licensees risk appetite and policies and procedures.

        Added: October 2020

    • Head of Claims

      • TC-1.1.12

        The Head of Claims function is responsible for directing and overseeing the operations of an insurance claims function to meet operational, financial and service requirements. The Head of Claims should ensure effective oversight and control of settlements in line with the insurance licensees risk appetite and policies and procedures. Moreover, the Head of Claims are involved in strategic processing and payment of claims and are often involved in sets policies on insurance claims.

        Added: October 2020

    • Head of Sales and Marketing/Head of Business Development

      • TC-1.1.13

        The Head of Sales and Marketing/Head of Business Development is responsible for implementing the corporate strategy; marketing, sales and public relations. He/ she is responsible for developing and overseeing the marketing campaigns, social media accounts, digital marketing channels and other marketing plans. He/ she ensures innovation in product design and developments and conduct behavioural and trend analysis. He/ she engages directly with customers and ensures services provided to customers are in line with insurance licensees policies and procedures and with industry best practices.

        Added: October 2020

    • Heads of other Functions

      • TC-1.1.14

        Heads of other functions are responsible for tracking specific functional performance goals in addition to identifying, managing, and reporting critical organisational issues upstream. Certain functions require dealing directly with customers while others do not. Both categories of functions, however, require specific qualifications and experience to meet the objectives as well as compliance requirements of the insurance licensee.

        Added: October 2020

      • TC-1.1.15

        For purposes of Paragraph TC-1.1.15, insurance licensees should contact the CBB should they require further clarification on whether a specific position falls under the definition of “Heads of other Functions”.

        Added: October 2020

    • Money Laundering Reporting Officer (MLRO) / Deputy Money Laundering Reporting Officer (DMLRO)

      • TC-1.1.16

        The attributes and responsibilities of the MLRO/ DMLRO are described more fully in Paragraphs FC-3.1.9 and FC-3.2.1.

        Added: October 2020

    • Unit-Linked Investment Adviser

      • TC-1.1.17

        A Unit-Linked Investment Adviser refers to the function of advising clients on contracts that are, by their nature, investment products, including, but not limited to pension and retirement products.

        Added: October 2020

    • Signing Actuary

      • TC-1.1.18

        A Signing Actuary is appointed to provide professional opinion and report on an insurance firm's actuarial evaluation; level of reserves that should be held in order to meet potential insurance liabilities. The signing actuary may be a Director or employee of the licensee and are accredited by an internationally recognised organisation.

        Added: October 2020