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  • IA-2 IA-2 Operating Framework

    • IA-2.1 IA-2.1 Client Agreements

      • IA-2.1.1

        Insurance aggregators must agree in writing the terms of business with their clients (i.e. insurance firms) and ensure that the following are stipulated:

        a) the full scope of the insurance aggregator services;
        b) the basis for providing advice (if any) including but not limited to methodologies used for such advice,
        c) the fees, charges or commissions relevant to the services being offered;
        d) the dispute resolution processes are available to the clients if they wish to make a complaint.
        October 2019

      • IA-2.1.2

        Insurance aggregators must disclose in writing the full particulars of any actual or potential conflicts of interest arising from any connection or association with product provider, including any commissions or fees and any material information or facts that may compromise its objectivity or independence.

        October 2019

    • IA-2.2 IA-2.2 Arrangements with Insurance Firms

      • IA-2.2.1

        No arrangements must be made by the insurance aggregators with the insurance firms which are against the interests of policyholders.

        October 2019

      • IA-2.2.2

        An insurance aggregator desirous of transmitting proposals to an insurance firm must enter into an "agreement" with the insurance firm which must include at least the following details:

        a) Timeframe and mode of transmission of proposals to be shared;
        b) Onus of complying with regulatory and other legal requirements on both the parties to the agreement;
        c) Identifying the different data elements to be shared such as name of prospective client/client/visitor of the web site, contact details etc.;
        d) The timeframe for providing the premium and feature tables of the agreed products to the insurance aggregator after concluding the agreement and keeping them up to date.
        October 2019

      • IA-2.2.3

        The insurance aggregator must keep the agreement ready for inspection as and when desired by the CBB's on-site supervision team.

        October 2019

      • IA-2.2.4

        The insurance aggregator must ensure the following:

        a) While entering into such arrangements, no insurance aggregator must promise nor any insurance firm must compel the insurance aggregator to distribute the products of only a particular insurance firm;
        b) The arrangements must have provisions to include duties and responsibilities of insurance aggregators towards the policyholders, duties and responsibilities of insurance firms and insurance aggregators, terms and conditions for termination of arrangements;
        c) In case an insurance aggregator wishes to terminate arrangement with any insurance firm, they may do so after informing the insurance firm, the reasons for termination of arrangement. In such cases, the insurance aggregator must service any policies solicited but not yet issued by the concerned insurance firm until the issuance of the said policies;
        d) No insurance firm must pay and no insurance aggregator must receive any signing fee or any other charges by whatever name called, except those permitted by the CBB under relevant regulations, for becoming its insurance aggregator.
        October 2019

      • IA-2.2.5

        The CBB may, at any point in time, direct any insurance firm or insurance aggregator to terminate the distribution arrangements.

        October 2019

    • IA-2.3 IA-2.3 Product Comparisons

      • Policy for comparison and distribution of insurance products

        • IA-2.3.1

          Insurance aggregators must have a Board approved policy on the approach to be followed by the insurance aggregator in having multiple tie-ups, type of products sold, grievance redress mechanism, reporting requirements and any other item. The Board of the insurance aggregator must review the same at least once in three years.

          October 2019

      • Display of product comparisons on the insurance aggregator website

        • IA-2.3.2

          The insurance aggregator must adhere to the following conditions relating to display of product comparison on its website:

          a) Disclose prominently on the home page, a notice that
          i. the prospective client's/visitor's particulars could be shared with insurance firms;
          ii. the information displayed on the insurance aggregator's website is of the insurance firms with whom the insurance aggregator has an agreement;
          b) Product information displayed by the insurance aggregator must be authentic and be based solely on information received from insurance firms;
          c) Insurance aggregators must not display customer ratings, rankings, endorsements or bestsellers of insurance products on its website;
          d) The content of the website of the insurance aggregator must be unbiased and factual in nature;
          e) Basic features of products may be compared, such as:
          i. Eligibility criteria
          ii. Policy term
          iii. Premium
          iv. Inbuilt benefits/riders
          v. Premiums for different age groups
          vi. Benefits such as survival benefits/maturity benefits/death benefits etc.
          vii. Any other additional information/special product features relating to the products
          f) Product comparisons that are displayed must be up-to-date and reflect the true picture of the products.
          g) The product comparison must highlight whether a particular policy is a sharia compliant Takaful policy or a conventional insurance policy.
          October 2019

        • IA-2.3.3

          Insurance aggregators must not operate multiple websites or tie up with other un-registered websites for comparison of products.

          October 2019

    • IA-2.4 IA-2.4 Disclosures and Management of Proposals

      • IA-2.4.1

        Insurance aggregators must adhere to the following requirements with respect to their platform:

        a) Insurance aggregators must disclose prominently on the home page or similar page of the relevant application that the prospective client's/visitor's particulars could be shared with insurance firms if the arrangements the insurance firms warrant such a disclosure
        b) Insurance aggregator must provide an option to select multiple insurance firms by the visitor, to whom the proposal must be transmitted simultaneously;
        c) Insurance aggregators must provide an option to select or choose between conventional insurance and Takaful products;
        d) Insurance aggregators must not transmit the proposal containing data of a client to insurance firm(s) other than the one(s) preferred by the client. However, if the client shows interest in buying insurance but does not prefer any insurance firm, the insurance aggregator may transmit the proposal to several insurance firms in the same class of insurance business based on the need analysis of the client;
        e) Ensure that the proposals and other data are transmitted to the insurance firms and others using secured data encryption technologies;
        f) Disclose in all its correspondences with all stakeholders its name followed by "licensed as an Insurance Broker — Insurance Aggregator by the Central Bank of Bahrain".
        October 2019

      • IA-2.4.2

        Insurance aggregators must not provide customers with any cash discounts on their own account, such as in the form of discount codes, cash backs and promotional codes etc.

        October 2019

    • IA-2.5 IA-2.5 Professional Indemnity Insurance

      • IA-2.5.1

        Every insurance aggregator must take out and continue to maintain a professional indemnity insurance cover from a licensed insurance firm in the Kingdom of Bahrain. (See Section GR-10.1)

        October 2019

      • IA-2.5.2

        An insurance aggregator must ensure that the insurance cover indemnifies against the following:

        a) any error or omission or negligence;
        b) any loss of money or other property for which the insurance aggregator is legally liable in consequence of any financial or fraudulent act or omission;
        c) any loss of documents and costs and expenses incurred in replacing or restoring such documents; and
        d) dishonest or fraudulent acts or omissions by insurance aggregator employees.
        October 2019

      • IA-2.5.3

        The indemnity cover should not contain any terms to the effect that payments of claims depend upon the insurance aggregator having first met the liability.

        October 2019

      • IA-2.5.4

        The cover should indemnify in respect of all claims made during the period of the insurance regardless of the time at which the event giving rise to the claim may have occurred.

        October 2019

      • IA-2.5.5

        The professional indemnity insurance cover must not be cancelled without the CBB's prior written approval.

        October 2019