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  • TA-1.2 TA-1.2 Structure of this Guidance

    • TA-1.2.1

      The table below lists the Modules of the CBB Insurance Rulebook and indicates those that apply to takaful and retakaful firms. The remaining chapters of this guide describe, in more detail, the principal requirements of each Module of the Regulations and Directives that apply to takaful and retakaful firms.

      HIGH LEVEL STANDARDS

      Module AU (Authorisation) Regulations and Directives dealing with the licensing requirements and conditions for providers of regulated insurance services. All sections applicable to insurance firms are also applicable to takaful and retakaful firms.
      Module PB (Principles of Business) Principles that are applicable to all insurance licensees regulated in Bahrain; these apply in full to takaful and retakaful firms.
      Module HC (High-Level Controls) Directives in respect of governance, systems and controls of licensees. All sections apply in full to takaful and retakaful firms. In addition, there are special requirements with respect to Takaful and Retakaful firms.
      Module AA (Auditors and Actuaries) Directives on the appointment and functions of external auditors and actuaries of insurance licensees. These apply in full to takaful and retakaful firms.
      Module GR (General Requirements) Regulations and Directives dealing with requirements covering other areas not included in other Modules. These include: books and records, corporate and trade names, dividends, business transfers, controllers, close links, statutory deposits, cessation of business and appointed representatives. These Regulations and Directives apply in full to takaful and retakaful firms.


      BUSINESS STANDARDS

      Module CA (Capital Adequacy) Directives governing minimum capital and solvency requirements and the valuation of assets and liabilities. Some of these Directives apply to all insurance firms; some are specific to takaful firms, dealing with solvency requirements for takaful firms and the potential for Qard Hassan from the takaful operator (shareholder fund) should the takaful fund fail to meet the liquidity requirements.
      Module BC (Business Conduct) The Code of Business Conduct governs the sale of insurance and applies to all insurance licensees. In addition, there are several requirements specifically applicable to takaful dealing with restrictions on the use of the term 'takaful/retakaful' marketing and promotion of takaful products and disclosure of wakala and mudaraba fees to participants.
      Module RM (Risk Management) Risk management standards applicable to licensees. These requirements apply in full to takaful and retakaful firms.
      Module FC (Financial Crime) Directives governing the monitoring and reporting of financial crime. This Module applies in full to takaful and retakaful firms.
      Module TC (Training & Competency) Directives to be developed will apply to both takaful insurance firms and conventional insurance firms.


      REPORTING REQUIREMENTS

      Module BR (CBB Reporting) Requirements for reporting to the CBB. Annual and quarterly reporting requirements, as well as group reporting, apply in full to takaful and retakaful firms.
      Module PD (Public Disclosure) The public disclosure requirements pertaining to Bahraini insurance firms and overseas insurance firms apply in full to takaful and retakaful firms.


      ENFORCEMENT AND REDRESS

      Module EN (Enforcement) This Module outlines enforcement powers and processes that may be applied by the CBB and applies in full to all insurance licensees.
      Module DP (Dispute Resolution) Directives will be developed later.
      Module CP (Compensation) Directives will be developed later.
      Amended: April 2014
      Amended: April 2011
      Amended: January 2007
      Amended: October 2007