A firm that is authorised as a captive insurance firm will have one of the following permissions granted by the CBB:
Category C1 — a Bahrain authorised insurer whose business is restricted to insuring only the insurance risks (other than liability risks) of its shareholder(s) or those of subsidiary or associated companies of its shareholder(s); or
Category C2 — A Bahrain authorised insurer whose business is restricted to insuring only the risks of its shareholder(s) or of subsidiary or associated companies of its shareholder(s), and whose business may include liability risks, subject to the CBB being satisfied that the activity, capital structure and management provide sufficient protection to potential third party claimants.
Some examples of business models that could qualify for captive licensing include:
(a) A group of businesses or professional firms insuring similar risks (who would, effectively, pool these risks through a captive);
(b) A car hire firm insuring collision damage risk, where the premium is paid by the hire firm. (Where the premium is paid by the hirer, an application for a conventional firm, not a captive, must be made.); and
(c) A firm, or group of firms insuring professional indemnity risks (in which case the captive would be classed as C2 and the business includes liability risks).
