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  • CI-1.1 CI-1.1 Captive Insurance in Bahrain

    • CI-1.1.1

      Captive insurers are companies established by industrial or commercial groups (who are themselves not insurance firms) primarily to insure the risks of their owning groups. Worldwide, there are over 4,000 captive insurance companies in existence.

      Amended: January 2007

    • CI-1.1.2

      Like many regulatory authorities, Bahrain differentiates between captive insurers, and insurance firms whose business does not generally originate from within their owning group. This differentiation is on the basis that:

      (a) A captive's obligations (through its insurance policies) are to its owners, not third parties (some captives, though may insure liability risks);
      (b) A captive's risk exposures (through its insurance policies) will generally be more concentrated and, at the same time, potentially more limited than conventional insurers; and
      (c) A captive will usually be managed by a specialised third party insurance manager.
      Amended: January 2007

    • CI-1.1.3

      The CBB's capital and solvency requirements are lower for captives than for other categories of insurer, though the CBB also monitors the 'risk gap' between policy liabilities and available assets. However, capital and solvency requirements for captives are increased where liability risks are included, due to the possibility of third party claimants. The CBB licenses insurance managers and there are specific differences in the governance, management and systems and controls requirements for captives to take account of this.

      Amended: January 2007