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  • AU-6 AU-6 Licensing and Registration Fees

    • AU-6.1 AU-6.1 Introduction

      • AU-6.1.1

        Insurance licensees and registered persons must comply with any fees levied by the CBB, pursuant to Article 180 of the CBB Law. The fees charged vary on the type of insurance license or registration granted by the CBB. Fees are levied at the time of application for licensing and on an annual basis for licensees and registered persons, thereafter.

        Added: July 2007

    • AU-6.2 AU-6.2 License Application Fees

      • AU-6.2.1

        With immediate effect, applicants seeking an insurance license from the CBB must pay a non-refundable application fee of BD 100 at the time of submitting their application to the CBB.

        Added: July 2007

      • AU-6.2.2

        There are no application fees for those seeking approved person status.

        Added: July 2007

      • AU-6.2.3

        Actuaries, loss adjusters and appointed representatives seeking registration status are exempt from application fees but are subject to annual fees as outlined in Section AU-6.3.

        Amended: October 2009
        Added: July 2007

    • AU-6.3 AU-6.3 Annual Fees

      • AU-6.3.1

        Insurance licensees or registered persons must pay to the CBB an annual licensing or registration fee, on 1st December of the preceding year for which fees are due.

        Amended: July 2013
        Added: July 2007

      • AU-6.3.2

        The relevant fees are specified in Rules AU-6.3.3 to AU-6.3.6A below: different fees are specified for insurance firms (other than captive insurance firms), captive insurance firms, insurance brokers, insurance consultants, insurance managers, actuaries, loss adjusters and appointed representatives. The fees due on 1st December are those due for the following calendar year. Where applicable, variable fees are calculated on the basis of the firm's latest audited financial statements for the previous calendar year: i.e. the fee payable on 1st December 2013 for the 2014 year (for example) based on a percentage, is calculated using the audited financial statements for 2012, assuming a 31st December year end.

        Amended: July 2013
        Amended: October 2009
        Added: July 2007

      • AU-6.3.3

        For insurance firms, other than captive insurance firms, the annual licensing fee is a fixed amount of BD 6,000. For captive insurance firms, the annual licensing fee is a fixed amount of BD 1,000.

        Amended: July 2013
        Added: July 2007

      • AU-6.3.4

        Insurance brokers, other than Bahraini single person companies, all insurance consultants and all insurance managers must pay a variable annual licensing fee, based on 0.25% of their relevant operating expenses, subject to a minimum ('floor') of BD 500 and a maximum ('cap') of BD 3,000.

        Amended: July 2013
        Added: July 2007

      • AU-6.3.5

        For insurance brokers that are Bahraini single person companies, the annual licensing fee is a fixed amount of BD 175.

        Amended: July 2013
        Added: July 2007

      • AU-6.3.6

        The annual registration fee for registered actuaries is a fixed amount of BD 100. For registered loss adjusters, unincorporated individuals must pay an annual registration fee of a fixed amount of BD 175 while incorporated loss adjusters must pay an annual registration fee of a fixed amount of BD 1,200.

        Amended: July 2023
        Amended: July 2013
        Amended: October 2007
        Added: July 2007

      • AU-6.3.6A

        For appointed representatives, the annual fee must be paid by the licensed principal. The fee for registered appointed representatives, that are unincorporated individuals is a fixed amount of BD 25. For incorporated appointed representatives, the fixed annual fee is based on the number of designated individuals within the corporate entity that are the representatives of the insurance firm. For incorporated appointed representatives that have:

        (a) 1 to 10 designated individuals, the fee is BD500;
        (b) 11 to 20 designated individuals, the fee is BD 1000; and
        (c) More than 20 designated individuals, the fee is BD1500.
        Amended: July 2013
        Adopted: October 2009

      • AU-6.3.6B

        For incorporated appointed representatives, the fee amount is based on the number of designated individuals at the prior year end.

        Adopted: October 2009

      • AU-6.3.6C

        As an example, for purposes of Paragraph AU-6.3.6B, if at 31st December 2012 an incorporated appointed representative had 8 designated individuals, the fee payable on 1st December 2013 for the 2014 year would be BD 500. If during the course of the year 2013, the number of designated individuals increased to 15 by year end 2013, the fee payable for the year 2015 would be BD 1000.

        Amended: July 2013
        Adopted: October 2009

      • AU-6.3.7

        For purposes of Paragraph AU-6.3.4, relevant operating expenses are defined as the total operating expenses of the licensee concerned, as recorded in the most recent audited financial statements available, subject to the adjustments specified in Rule AU-6.3.8.

        Added: July 2007

      • AU-6.3.8

        The adjustments to be made to relevant operating expenses are the exclusion of the following items from total operating expenses:

        (a) Training costs;
        (b) Charitable donations;
        (c) CBB fees paid; and
        (d) Non-executive Directors' remuneration.
        Added: July 2007

      • AU-6.3.9

        For the avoidance of doubt, operating expenses for the purposes of this Section, do not include items such as depreciation, provisions, interest expense, and dividends.

        Added: July 2007

      • AU-6.3.10

        The CBB would normally rely on the audited accounts of a licensee as representing a true and fair picture of its operating expenses. However, the CBB reserves the right to enquire about the accounting treatment of expenses, and/or policies on intra-group charging, if it believes that these are being used artificially to reduce a license fee.

        Added: July 2007

      • AU-6.3.11

        Insurance licensees, subject to Paragraph AU-6.3.4 must complete and submit Form ALF (Annual License Fee) to the CBB, no later than 15th October of the preceding year for which fees are due.

        Amended: July 2013
        Amended: April 2009
        Added: July 2007

      • AU-6.3.11A

        Except for actuaries and loss adjustors, all annual license fees are collected by direct debit. For licensees subject to a variable fee, the fee levied will be based on form ALF that is provided in accordance with Paragraph AU-6.3.11.

        Added: July 2013

      • AU-6.3.11B

        All licensees subject to direct debit for the payment of the annual fee, must complete and submit to the CBB a Direct Debit Authorisation Form by 15th September, available under Part B of Volume 3 (Insurance) CBB Rulebook on the CBB Website.

        Added: July 2013

      • AU-6.3.11C

        For actuaries and loss adjusters, the annual fixed fee must be remitted by direct deposit or wire transfer by 1st December of the previous year for which the fees are due. Payment instructions are outlined in Form ALF which must be completed when fees are remitted.

        Added: July 2013

      • AU-6.3.12

        For new insurance firm licensees, their first annual license fee is payable when their license is issued by the CBB. The annual fee due in relation to the first year in which the license has been granted, shall be prorated for the year using the date of the official licensing letter from the CBB, as the base for the prorated period. The prorated fee will result in fees charged only for the number of complete months left in the current calendar year.

        Added: July 2007
        Amended: October 2007
        Amended: April 2008
        Amended: April 2009

      • AU-6.3.12A

        For those new licensees subject to a fee based on their relevant operating expenses (refer to Paragraph AU-6.3.4), the amount payable in relation to the first year in which the license has been granted is the floor amount of BD500.

        Added: April 2008
        Amended: October 2008
        Amended: April 2009

      • AU-6.3.13

        For newly registered actuaries, individual loss adjusters and appointed representatives, the full annual amount of the annual registration fee referred to in Paragraph AU-6.3.6 and AU-6.3.6A, shall be the fee required to be paid to the CBB for the first year in which the registration status has been granted.

        Amended: October 2009
        Amended: April 2008
        Added: July 2007

      • AU-6.3.14

        For newly registered incorporated loss adjusters, the annual registration fee referred to in Paragraph AU-6.3.6, shall be prorated for the year using the date of the official registration letter from the CBB, as the base for the prorated period. The prorated fee will result in fees charged only for the number of complete months left in the current calendar year, subject to a minimum fee of BD 250.

        Added: July 2007
        Amended: April 2008
        Amended: October 2008

      • AU-6.3.15

        [This Paragraph was deleted in July 2013]

        Deleted: July 2013
        Added: July 2007

      • AU-6.3.16

        [This Paragraph was deleted in April 2009]

        Deleted: April 2009

      • AU-6.3.17

        Where a license or registration is cancelled (whether at the initiative of the firm or the CBB), no refund is paid for any months remaining in the calendar year in question, should a fee have been paid for that year.

        Added: July 2007

      • AU-6.3.18

        Insurance licensees or registered persons failing to comply with this Section may be subject to financial penalties for date sensitive requirements as outlined in Section EN-5.3B or may have their license or registered status withdrawn by the CBB.

        Added: July 2013