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ES-1.1.9

Past version: Effective from 01 Jul 2007 to 30 Sep 2007
To view other versions open the versions tab on the right

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 and loss adjusters. Effective 1 June 2005. AU-1.1.11 where an insurance licensee carries on a prohibited commercial business, the licensee must notify 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 or unincorporated entities.
2. Certain exemptions for captive insurers (ref . HC-1.2.1 and HC-2.2.1)
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-1.2.8 and HC-2.1.5).
4. Where a licensee's Board does not consider it necessary to create Board committees, it must be prepared to give reasons for its decision to the CBB (HC-2.1.3)
1. Module HC-1.1.3 Insurance brokers licensed prior to 1 June 2005 as unincorporated entities may maintain their current status until 31 Dec. 2006.
2. Module HC-1.2.5 Separation between Chairman of the Board and Chief Executive — upon application, the CBB may grant a transition period for a limited time period.
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 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.
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 insurance firms to be met by December 31, 2007.
For insurance brokers licensed prior to 1 June 2005, implementation effective 31 Dec. 2006. For new takaful companies, specific transition rules.
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 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 2007.  
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 To be developed in 2007.  
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: January 2007