CA-A.1 CA-A.1 Purpose
CA-A.1.1
This Module presents requirements that have to be met by
insurance licensees , with respect to the level of capital they must maintain. Condition 5 of the Central Bank of Bahrain ('the CBB') Licensing Conditions (cf. Chapter AU-2.5) requiresinsurance licensees to maintain adequate financial resources, in excess of the minimum requirements specified in Module CA (Capital Adequacy).Amended: January 2007CA-A.1.2
The requirements specified in this Module vary according to the Category of
insurance licensee concerned, the volume of business undertaken and its inherent risk. The purpose of such requirements is to ensure thatinsurance licensees maintain levels of capital sufficient to absorb unexpected losses, within a reasonable confidence interval. The capital levels specified here, in other words, are not sufficient to absorb all unexpected losses.Insurance licensees are also required to make their own assessment of the prudent level of capital that they need to hold.Amended: January 2007CA-A.1.3
This Module covers requirements to be met by both conventional and Takaful insurers. Specific requirements for
Takaful firms are given in Chapter CA-8.Amended: January 2007
Amended: October 2008Legal Basis
CA-A.1.4
This Module contains the CBB's Directive (as amended from time to time) relating to the capital adequacy of
insurance licensees , and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to allinsurance licensees .Amended: January 2011
Adopted: January 2007CA-A.1.5
For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.
Adopted: January 2007
