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  • IM-2.1 IM-2.1 Authorisation

    • IM-2.1.1

      An entity in Bahrain must be authorised if it wishes to conduct regulated insurance services, including effecting insurance contracts, the broking of insurance contracts, the offering of advice to third parties and the provision of insurance management services.

      Rulebook Reference AU-A.1.2
      Amended: October 2007

    • IM-2.1.2

      An insurance intermediary may be licensed for several types of business, including general insurance, unit linked long-term insurance, long-term insurance (other than unit-linked business), reinsurance and takaful products.

      Rulebook Reference AU-1.1.16,
      AU-1.1.18,
      AU-1.1.19 and
      AU-1.1.21
      Amended: July 2007
      Amended: October 2007

    • IM-2.1.3

      The broking of insurance contracts refers to advising on insurance, acting as agent for another person in relation to the buying of insurance for that other person or making arrangements with a view to another person, whether as principal or agent, buying insurance. A person does not carry on the broking of insurance contracts if he falls under the definition of exempt introducer.

      Rulebook Reference AU-1.4.10 and
      AU-1.4.13
      Amended: October 2007

    • IM-2.1.4

      The offering of insurance advice by insurance consultants refers to providing advice to a person in his capacity as agent for a policyholder or potential policyholder, on the merits of entering into a contract of insurance as principal or agent.

      Rulebook Reference AU-1.4.16
      Amended: January 2007
      Amended: October 2007

    • IM-2.1.5

      The provision of insurance management services by insurance managers refers to the provision of management services or exercising the managerial functions on behalf of an insurance firm.

      Rulebook Reference AU-1.4.20
      Amended: October 2007

    • IM-2.1.6

      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 may continue as such until 31 December 2006.

      Rulebook Reference AU-2.1.7

    • IM-2.1.7

      New applicants for licensing as insurance brokers, after 1 April 2005 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; or
      (v) A Bahraini single person company which was incorporated and licensed to conduct insurance business prior to 1st April 2009..

      Rulebook Reference AU-2.1.8

      Amended: April 2010
      Amended: January 2007

    • IM-2.1.8

      For insurance consultants, the legal status must be:

      (i) A sole proprietorship registered with the Ministry of Commerce;
      (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.

      Rulebook Reference AU-2.1.11

      Amended: April 2010
      Amended: January 2007

    • IM-2.1.9

      Insurance intermediaries applying for a license must do so in the form prescribed by the CBB and such application must include inter alia, details of proposed professional indemnity coverage.

      Rulebook Reference AU-1.1.6
      Amended: January 2007

    • IM-2.1.10

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

      Rulebook Reference AU-2.1.10

    • IM-2.1.11

      For insurance managers, the legal status 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.
      Rulebook Reference AU-2.1.12
      Amended: January 2007

    • IM-2.1.12

      insurance intermediaries and insurance managers with their Registered Office in the Kingdom of Bahrain must maintain their Head Office in the Kingdom. Overseas insurance licensees must maintain a local management presence and premises in the Kingdom appropriate to the nature and scale of their activities.

      Rulebook Reference AU-2.2.1

    • IM-2.1.13

      All persons wishing to undertake a controlled function in an insurance intermediary or insurance manager must be approved by the CBB prior to their appointment. (Approved Person).

      Rulebook Reference AU-1.2
      Amended: January 2007

    • IM-2.1.14

      Insurance intermediaries and insurance managers seeking an approved person authorisation for an individual, must satisfy the CBB that the individual concerned is fit and proper to undertake the controlled function.

      Rulebook Reference AU-3
      Amended: January 2007