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  • IM-3.1 IM-3.1 Capital Adequacy

    • IM-3.1.1

      Principle 9 requires insurance licensees to hold adequate financial resources for the needs of the business. The Capital Adequacy Module sets out in detail the minimum financial resources requirements for insurance licensees. In addition, it is the responsibility of Boards of insurance licensees to make their own assessment of the financial resources needed to meet their liabilities.

      Rulebook Reference PB-1.9

    • IM-3.1.2

      Bahraini insurance brokers must maintain in their insurance brokerage business at all times the greater of:

      (a) A minimum net assets value of BD 50,000;
      (b) 4% of fiduciary liabilities; or
      (c) 4% of annual income from global insurance broking activities.

      There are no minimum capital and net asset requirements for overseas insurance brokers. However, for overseas insurance brokers, financial statements of the parent company must be submitted to the CBB for review, in order to assess the financial stability of the group on a global basis.

      Rulebook Reference CA-1.3
      Amended: April 2012
      Amended: October 2007
      Amended: January 2007

    • IM-3.1.3

      Insurance consultants and insurance managers must possess financial resources commensurate with the scale and nature of their insurance consultancy or management activities. There are no minimum capital and net assets requirements applicable to insurance consultants and insurance managers. However, Principle 9 does apply and the CBB may suspend or revoke the license of any insurance consultant or insurance manager whom it reasonably considers does not possess financial resources commensurate with the scale and nature of its insurance consultancy or management activities.

      Rulebook Reference CA-1.4
      Amended: January 2007