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  • AU-2.1 AU-2.1 Condition 1: Legal Status

    • Insurance Firm

      • AU-2.1.1

        Except for captive insurers, the legal status of an insurance firm must be:

        (i) A Bahraini joint stock company (BSC);
        (ii) A branch resident in Bahrain of a company incorporated under the laws of its territory of incorporation and (where local regulation so requires) authorised as an insurance or reinsurance firm in that territory; or
        (iii) A Bahraini exempt company (E.C.) which was incorporated and licensed to conduct insurance business prior to 1st January 2005.
        Amended: July 2007

      • AU-2.1.2

        For captive insurers, the legal status of an insurance firm must be:

        (i) A Bahraini special purpose vehicle (SPV), specifically established to carry out the activities of a captive insurer; or
        (ii) Any of the legal structures noted in Paragraph AU-2.1.1.
        Amended: July 2007

      • AU-2.1.3

        A Bahraini SPV is a category of a closed Bahraini joint stock company (BSC(c)). The minimum capital required by the Ministry of Commerce and Industry to incorporate such a company is much lower than for other types of companies, at BD 1,000. In addition, however, captive insurers must satisfy the CBB's capital requirements for captives, as set out in Module CA (Capital Adequacy).

        Amended: July 2007
        Amended: January 2008

      • AU-2.1.4

        Where the insurance licensee is a branch of an overseas insurance company, in deciding whether to grant a license, the CBB will pay close regard to its activities elsewhere and how these activities are regulated. If the insurance licensee is not regulated elsewhere (e.g. some countries do not regulate reinsurance firms) or in a jurisdiction not substantially compliant with IAIS Core Principles or FATF standards, then an application for licensing can only be considered after exhaustive enquiries into the firm's shareholders, management structure and financial position.

        Amended: July 2007

      • AU-2.1.5

        [Guidance Paragraph deleted in January 2007.]

        Amended: July 2007

      • AU-2.1.6

        [Guidance Paragraph deleted in October 2005.]

    • Insurance Broker

      • AU-2.1.7

        Licensees who were carrying out activities that fall within the definition of the regulated activity of insurance broker prior to 1 April 2005 may be unincorporated entities or natural persons and were allowed to continue as such until 31 December 2006.

        Amended: July 2007

      • AU-2.1.8

        The legal status of an insurance broker after 1 April 2009 must be:

        (i) A Bahraini joint stock company (BSC);
        (ii) A Bahraini company with limited liability ('WLL');
        (iii) A branch resident in Bahrain of a company incorporated under the laws of its territory of incorporation and (where local regulation so requires) authorised as an insurance or reinsurance intermediary in that territory, and licensed to conduct insurance business in Bahrain prior to 1st April 2009;
        (iv) A Bahraini exempt company (E.C.) which was incorporated and licensed to conduct insurance business prior to 1st January 2005;
        (v) A Bahraini single person company which was incorporated and licensed to conduct insurance business prior to 1st April 2009; or
        (vi) A natural person that has been licensed by the CBB to conduct insurance business prior to April 2005.
        Amended: October 2012
        Amended: April 2010
        Amended: October 2009
        Amended: April 2009
        Amended: July 2007

      • AU-2.1.9

        Licensees referred to in Subparagraphs AU-2.1.8 (v) and (vi) will be granted a six-month period from the date of the death of the natural person to convert the license to comply with Subparagraph AU-2.1.8 (i) or (ii), subject to the CBB's prior written approval.

        Amended: October 2012
        Amended: July 2007

      • AU-2.1.10

        An insurance broker's business activity must be restricted by its Memorandum and Articles of Association to insurance broking.

    • Insurance Consultant

      • AU-2.1.11

        Persons carrying out the regulated activity of insurance consultant, and who meet the licensing criteria of this Section, must be:

        (i) [This Subparagraph was deleted in October 2014];
        (ii) A Bahraini single person company;
        (iii) A Bahraini joint stock company (BSC);
        (iv) A Bahraini company with limited liability ('WLL'); or
        (v) A Bahraini exempt company (E.C.) which was incorporated and licensed to conduct insurance business prior to 1st January 2005.
        Amended: October 2014
        Amended: October 2009
        Amended: July 2007

    • Insurance Manager

      • AU-2.1.12

        Persons carrying out the regulated activity of insurance manager, and who meet the licensing criteria of this Section must be:

        (i) A Bahraini joint stock company (BSC);
        (ii) A Bahraini company with limited liability ('WLL'); or
        (iii) A branch resident in Bahrain of a company incorporated under the laws of its territory of incorporation and (where local regulation so requires) authorised as an insurance or reinsurance intermediary in that territory.
        Amended: July 2007

      • AU-2.1.13

        An insurance manager is a professional provider of services to insurance firms, which may include company secretarial, bookkeeping, claims processing and underwriting and, where duly licensed, insurance consulting and actuarial services. The CBB would, in principle, regard it as acceptable for the insurance manager to provide these services to other clients, whether or not insurance clients. It would not regard it as acceptable for the firm to combine these activities with that of insurance broker, although it is possible for a group to include both insurance broker and insurance manager activities, for instance, by an insurance broker establishing a subsidiary to act as an insurance manager (or vice versa).

        Amended: July 2007