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  • AU-2.5 AU-2.5 Condition 5: Financial Resources

    • AU-2.5.1

      Insurance licensees must maintain a level of financial resources, as agreed with the CBB, adequate for the level of business proposed. The level of financial resources held must at all times meet the minimum requirements contained in Module CA (Capital Adequacy), as specified for the category of insurance license held.

      Amended: July 2007

    • AU-2.5.2

      A 3-year business plan, with financial projections, must be submitted with any application for a license, demonstrating the adequacy of financial resources over that period, together with details (where appropriate) as to the calculation of rates, technical reserves, use of reinsurance, investment and valuation policies.

    • AU-2.5.3

      Overseas insurance applicants are required to provide written confirmation from their head office that the head office will provide financial support to the branch sufficient to enable it to meet its obligations as and when they fall due. Overseas insurance applicants must also demonstrate that the company as a whole is adequately resourced for the amount of risks underwritten, and that it and its group meet solvency standards applied by its home supervisor.

      Amended: October 2007

    • AU-2.5.4

      Insurance firms and insurance brokers must maintain a cash deposit with a retail bank licensed to operate in the Kingdom of Bahrain, in keeping with the requirement specified in Section GR-7.1.

      Amended: July 2007
      Amended: October 2007

    • AU-2.5.5

      Insurance brokers and insurance consultants must maintain professional indemnity coverage as specified in Chapter GR-10.