Market risk

(as defined under Paragraph RM-4.1.3)

Market risk relates to the exposure of the insurance licensee to fluctuations in the market value, currency or yield of an asset.

Market value

The amount that could reasonably be expected to be received from the disposal of an asset in an orderly market.

Mathematical reserves

The provision made by an insurance firm to cover liabilities (excluding liabilities which have fallen due) arising under or in connection with contracts for long term insurance business.

Mathematical reserves basis calculation

The calculation described in CA-2.1.10.

Matrix management

Organisational structures where people have multiple reporting lines. Such situations can arise where business units cut across geographic or functional units.

Minimum fund

An amount fixed by the CBB from time to time not less than the following: Category 1 Insurer: BD 300,000 Category 2 Insurer: BD 500,000 Category 3 Insurer: BD 400,000 Category 4 Insurer: The relevant minimum fund for category 1 or 2 (depending on the type of general business underwritten) PLUS the Category 3 minimum. For captive insurers, Category C1 Insurer: BD 75,000 Category C2 Insurer: BD 300,000.

Morbidity

Incidence of disability, medical, dental, critical illness or other health related coverage.

Managing Director

Defined in Rule AU-1.2.9A. A Managing Director is a Director on the Board of a licensee who: