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  • CA-A.2 CA-A.2 Module History

    • CA-A.2.1

      This Module was first issued in April 2005 by the BMA, together with the rest of Volume 3 (Insurance). Any material changes to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.

      Amended: January 2007

    • CA-A.2.2

      When the CBB replaced the BMA in September 2006, the provisions of this Module remained in force. Volume 3 was updated in January 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where the update necessitated changes to actual requirements.

      Amended: January 2007

    • CA-A.2.3

      A list of recent changes made to this Module is detailed in the table below:

      Module Ref. Change Date Description of Changes
      CA-1.2 01/07/05 Changes made to the definitions of Tier 1 and Tier 2.
      CA-4.1 01/07/05 Correction to cross-reference.
      CA-4.2 01/07/05 Clarified valuation of amounts receivable.
      CA-7.1 01/07/05 Minor correction to list.
      CA-8.2 01/07/05 Minor correction.
      CA-8.3 01/07/05 Minor correction.
      CA-8.4 01/07/05 Minor correction.
      CA-8.5 01/07/05 Minor correction.
      CA-1.2 01/10/05 Amended requirement for minimum paid-in capital to minimum Tier 1 capital and related transition rules; clarified the definition of Tier 1 capital with respect to reserves and appropriations; clarified definition of Tier 2 in relation to the investment fair value reserve; amended determination of capital available chart in line with other changes in Section CA-1.2.
      CA-2.1 01/10/05 Added class of short term medical for solvency calculation of premiums basis and claims basis.
      CA-4.2 01/10/05 Clarified the treatment of unlisted equity shares and deleted the reference to managed funds.
      CA-7.1 01/10/05 Corrected reference to Group Insurance Firm Return.
      CA-3.1 01/01/06 Clarified that rule applies to related parties, as defined in Glossary.
      CA-2.1.14 01/04/06 Clarified the calculation of the average gross claims incurred.
      CA-4.2.25 01/04/06 Corrected that receivables from contracts of insurance are also included under general asset valuation regulations.
      CA-6.1.6 01/04/06 Clarified the definitions of 'assets' and 'liabilities' for purposes of currency matching and localisation requirements.
      CA-1.2.8 and CA-1.2.21 01/07/06 Added minority interest as part of the components of Tier 1 and clarified excess tier 2 capital.
      CA-2.1.14 01/07/06 Clarified calculation of required solvency margin on the Claims basis.
      CA-4.3.2 01/07/06 Clarified category limits for assets linked to long-term liabilities.
      CA-8.4.3 01/07/06 Clarified definition of capital available for a takaful fund.
      CA-A.1.4 01/2007 New Rule introduced, categorising this Module as a Directive.
      CA-1.2.8 and 1.2.21 01/2007 Minority interest was deleted as part of Tier 1 capital as solvency test is performed on an unconsolidated basis.
      CA-1.2.21 01/2007 Deleted reference to negative reserves as no discounting is permitted that would give rise to negative reserves. Clarified that there should be a deduction for solvency margin deduction required for branches in other jurisdictions. Added a deduction for assets pledged or provided as collateral.
      CA-2.1.8A 01/2007 The required solvency margin for pure reinsurers, other than for the reinsurance of linked business, is to be calculated in accordance with Paragraph CA-2.1.12.
      CA-2.1.15 01/2007 The reference period for the calculation of average gross claims and met claims incurred is now limited to 3 years. The 7-year option has been deleted.
      CA-4.2.25 01/2007 Clarified that all amounts due under contracts of insurance and reinsurance that have been due for more than 6 months must be valued at nil.
      CA-1.2.1
      and 1.2.2      		 10/2007 Minimum Tier 1 capital only applies to Bahraini insurance firms
      CA-4.2.25A 10/2008 Added a Paragraph to deal with the valuation of unearned reinsurance premiums.
      CA-8.4.6A 10/2008 Clarified treatment of income generated from the assets forming part of the free loan to the Takaful fund.
      CA-8.4.13 10/2008 Introduced Rules for transition period for newly established Takaful funds.
      CA-6.1.1 04/2009 Clarified non-application of localisation requirements to unit-linked products.
      CA-8.4.8 04/2009 Paragraph 8.4.8 deleted on funding of deficit for Family Takaful funds
      CA-1.2.4 10/2009 Paragraph amended to allow for the zillmer adjustment as outlined in Paragraph CA-5.1.24
      CA-3.1 10/2009 Section amended to reemphasize the need for separate accounting funds for different lines of business and different funds.
      CA-5.1 10/2009 Various amendments in line with consultation document issued in July 2009.
      CA-A.1.4 01/2011 Clarified legal basis
      CA-1.3.1 and CA-1.3.1A 04/2012 Updated capital requirements for insurance brokers.
      CA-1.2.3,
      CA-1.2.23,
      CA-4.2.25,
      CA-8.2,
      CA-8.3,
      CA-8.4,
      CA-8.4A,
      CA-8.5      		 04/2014 Various amendments to reflect consultation undertaken on the enhanced operational and solvency framework. Some changes are applicable to all insurance firms and some only applicable to Takaful firms.
      CA-1.3.1B 04/2023 Added a new Paragraph on minimum capital and liquid funds required for insurance aggregators.

    • CA-A.2.4

      Guidance on the implementation and transition to Volume 3 (Insurance) is given in Module ES (Executive Summary).

      Amended: January 2007