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CI-1.2.1

The following table lists the Modules of the CBB Insurance Rulebook and indicates those that apply tocaptive insurance firms. The remaining Chapters of this guide will describe in more detail the principal requirements of each Module of the Regulations and Directives that apply to captive insurance firms.

HIGH LEVEL STANDARDS

Module AU (Authorisation) Regulations and Directives dealing with the licensing requirements and conditions for providers of regulated insurance services. All sections applicable to insurance firms are also applicable to captive insurers.
Module PB (Principles of Business) Principles that are applicable to all insurance licensees regulated in Bahrain; these apply in full to captive firms.
Module HC (High-Level Controls) Directives in respect of governance, systems and controls of licensees. Captive firms are subject to a different level of requirements due to the nature of their activities.
Module AA (Auditors and Actuaries) Directives on the appointment and functions of external auditors and actuaries of insurance licensees. These apply in full apart from some minor exemptions.
Module GR (General Requirements) Regulations and Directives dealing with requirements covering matters not included in other Modules. These include: books and records, corporate and trade names, dividends, business transfers, controllers, close links, statutory deposits, cessation of business and appointed representatives. These Regulations and Directives apply for the most part to captive insurers, but there are lighter requirements particularly for business transfers due to the nature of the business undertaken and the relationship of the captive insurer with the owning firm.

BUSINESS STANDARDS

Module CA (Capital Adequacy) Directives governing minimum capital and solvency requirements and the valuation of assets and liabilities. Some of these Directives apply to all insurance firms; some are specific to captive firms, though due to the nature of their business, these are lighter requirements than those imposed on insurance firms.
Module BC (Business Conduct) The Code of Business Conduct governs the sale of insurance and applies to all insurance licensees.
Module RM (Risk Management) Risk management standards applicable to licensees. Captive firms are exempted from some of the detailed requirements. Several of the requirements for risk management can be outsourced to insurance managers.
Module FC (Financial Crime) Directives governing the monitoring and reporting of financial crime. Captive firms are exempted from some of the detailed requirements.
Module TC (Training & Competency) Directives to be developed but are not expected to apply to captive firms directly where the management is sub-contracted to an insurance manager. Some of the Directives may apply to self-managed captive insurance firms.


REPORTING REQUIREMENTS

Module BR (CBB Reporting) Requirements for reporting to the CBB. Annual reporting requirements apply to captive firms. Captives are exempted from group and quarterly reporting requirements.
Module PD (Public Disclosure) This Module, governing public disclosure, does not apply to captive firms.


ENFORCEMENT AND REDRESS

Module EN (Enforcement) This Module outlines enforcement powers and processes that may be applied by the CBB and applies in full to all insurance licensees.
Module DP (Dispute Resolution) Directives will be developed later but are not expected to apply to captive firms.
Module CP (Compensation) Directives will be developed later but are not expected to apply to captive firms.

Amended: April 2011
Amended: January 2007
Amended: October 2007