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  • ES-1.1 ES-1.1 Structure of Volume 3 (Insurance)

    • ES-1.1.1

      Volume 3 (Insurance) of the Rulebook covers insurance activities, i.e. the provision of regulated insurance services by insurance licensees. It also includes requirements regarding approved persons; and the registration requirements for actuaries, loss adjusters and appointed representatives.

      Amended: October 2009
      Amended: January 2007

    • ES-1.1.2

      Volume 3 excludes representative offices of insurance firms, and ancillary services providers. These Regulations will later be incorporated into Volume 5 (Specialised Activities) of the CBB Rulebook, to be released at a later date.

      Adopted: January 2007
      Amended: October 2007

    • ES-1.1.3

      Volume 3 (Insurance) is made up of two volumes: Part A is the main Volume containing detailed Modules containing the Rules and Guidance and Part B is an appendix Volume containing a glossary of defined terms, CBB authorisation forms, CBB reporting forms and any supplementary information.

      Amended: January 2007

    • ES-1.1.4

      Part A of Volume 3 (Insurance) is organized under the following headings:

      •  Introduction;
      •  High Level Standards;
      •  Business Standards;
      •  Reporting Requirements;
      •  Enforcement and Redress; and
      •  Sector Guides.
      Amended: January 2007
      Amended: October 2007

    • ES-1.1.5

      Including this Executive Summary Module, there are 20 Modules that make up Part A of Volume 3 (Insurance). The requirements for the various insurance license categories are embedded throughout Part A. In addition, for some specialised licenses (captive insurers, insurance intermediaries and takaful/retakaful) there are sector guides summarizing the key requirements, specifically applicable to these categories.

      Amended: January 2007

    • ES-1.1.7

      Defined terms used in the Rulebook are underlined; their definition can be found in the Glossary. Each volume has its own Glossary, as definitions of terms used apply only to the Volume in question. It is possible for the same term to be used in a different volume with a different meaning.

      Adopted: January 2007

    • ES-1.1.8

      There are four authorisation forms, comprising (i) Form 1 (application for a license); (ii) Form 2 (application for the authorisation of a controller); (iii) Form 3 (application for approved person status); and (iv) Form 4 (application for registration).

      Adopted: January 2007
      Amended: October 2007

    • ES-1.1.9

      A summary of the Modules, their application and implementation is given in the table below:

      Module Application Transition Rules
      Module AU All new applicants for licenses, approved persons and registration of actuaries, loss adjusters and appointed representatives. Effective 1 June 2005. AU-1.1.11 where an insurance licensee carries on a prohibited commercial business, the licensee must notify the CBB and establish the transitional rules.
      Module PB All insurance licensees and approved persons. None.
      Effective 1 June 2005.
      Module HC
      1. Applies to all Bahraini insurance licensees except for Bahraini single person companies.
      2. Insurance consultants, insurance managers and captive insurers are subject to Guidance under HC-10.
      3. Exemption possible from the requirement to have 2 independent non-executive Directors for Bahraini insurance licensees that are part of an overseas group and exemption to have Board Committees (HC-1.5.2).
      4. Where an insurance broker's Board does not consider it necessary to create an audit committee, it must be prepared to give reasons for its decision to the CBB (HC-B.1.2).
      		The updated Module is effective on 1st January 2011. All insurance licensees to which Module HC applies must be in full compliance by the financial year end 2011.
      Module AA All insurance licensees — auditors
      All insurance firms — actuaries       		For insurance firms whose business is restricted to group life policies, having a maturity of less than or equal to 1 year, actuarial requirements must be met by December 31, 2007.
      The first period for which a report is required by a Signing Actuary is for the period ending December 31, 2008.
      All other requirements are effective 1 July 2005.
      Module GR Refer to chart in GR-B.1.1 for application All insurance licensees must comply with the requirements for books and records within Bahrain, effective 1 July 2005.
      Professional indemnity coverage must be met by all insurance brokers and insurance consultants by 31 Dec. 2005.
      For unincorporated brokers licensed prior to 1 June 2005, professional indemnity coverage must be met by 31 Dec 2006.
      All other provisions of Module GR are to be applied effective 1 June 2005.
      Compliance with Resolution (11) of 2009 dealing with appointed representatives is effective 1st January 2010.
      Module CA All insurance licensees, with specific requirements applicable to different types of licensees.
      Also special rules in place for takaful firms.       		Minimum Tier 1 capital for Bahraini insurance firms to be met by December 31, 2007.
      For insurance brokers licensed prior to 1 June 2005, implementation effective 31 Dec. 2006.
      For Qard Hassan granted for solvency purposes, repayment or write off over a period of 5 years from April 2014.
      For other insurance licensees licensed prior to 1 June 2005, implementation effective 31 Dec. 2005.
      Module BC Applicable to direct domestic business. Reinsurance business is exempted. Also special rules in place for takaful firms. None.
      Effective 1 July 2005.
      Module CL Applies to all insurance brokers and appointed representatives licensed by the CBB that undertake the broking of insurance contracts (see Rule AU-1.4.10) and hold client money. Effective 1 July 2012.
      Module RM Only applies to insurance firms and insurance brokers. Physical Security Measures and Third Party Insurance are effective December 31, 2006.
      Module FC Measures for the prevention of money laundering and terrorism financing apply to insurance firms and insurance brokers, with some exemptions for captive insurers managed by an insurance manager. Where captive insurers are managed by an insurance manager, this Module also applies to the insurance manager.
      Some exemption possible for reinsurers (FC-B.1.2).
      Measures dealing with fraud (FC-8) apply to all insurance licensees.       		Effective 1 July 2005. For long-term insurance contracts, the CBB expects the Module to be applied to current clients gradually on a case by case basis.
      Module TC To be developed in the future.  
      Module BR All insurance licensees, with specific requirements applicable to different types of licensees. For insurance firms, first annual and group reporting due for the period ending 31 December 2006 and first quarterly report due for the quarter ending 31 March 2007. Notification and approval requirements effective 1 June 2005.
      Module PD Only applies to insurance firms. First disclosure requirements required for the period ending 31 December 2005.
      First semi-annual disclosure requirements required for the period ending 30 June 2008.
      Module EN All insurance licensees, approved persons and registered persons. None.
      Effective 1 June 2005.
      Module DP [Deleted as included in Chapter BC-4]  
      Module CP To be developed in the future.  
      Module CI Captive insurers Transition rules as per those stated in main Modules.
      Module IM Insurance intermediaries Transition rules as per those stated in main Modules.
      Module TA Takaful/retakaful Transition rules as per those stated in main Modules.
      Amended: April 2014
      Amended: October 2012
      Amended: April 2012
      Amended: April 2011
      Amended: October 2009
      Amended: October 2007
      Amended: January 2007