BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player

Location: Central Bank of Bahrain Volume 3—Insurance > Part A > High Level Standards > AU Authorisation > AU-1 Authorisation Requirements > AU-1.1 Insurance Licensees > Authorisation > AU-1.1.4
  • Authorisation

    • AU-1.1.3

      Depending on the type of regulated insurance serviceG that a person wishes to undertake, applicants must seek to be licensed either as an insurance firmG , an insurance brokerG , an insurance consultantG , an insurance managerG or an insurance exchange operatorG . These license categories cannot be combined.

      Amended: July 2007

    • AU-1.1.4

      Within the Kingdom of Bahrain and in respect of Bahrain residents, licensed insurance firmsG and insurance brokersG may only effect contracts of insurance through intermediaries when these intermediaries are:

      (a) Licensed by the CBB (e.g., as an insurance brokerG );
      (b) Exempt introducersG (as defined in Paragraph AU-1.4.13); or
      (c) Appointed representativesG .
      Amended: July 2007

    • AU-1.1.5

      Persons wishing to be licensed to undertake regulated insurance servicesG within or from the Kingdom of Bahrain must apply in writing to the CBB.

      Amended: July 2007

    • AU-1.1.6

      An application for a license must be in the form prescribed by the CBB and must contain, inter alia:

      (a) A business plan specifying the type of business to be conducted;
      (b) Application forms for all controllersG ;
      (c) Application forms for all controlled functionsG ; and
      (d) For insurance brokersG and insurance consultantsG , details of proposed professional indemnity coverage.
      Amended: July 2007

    • AU-1.1.7

      The CBB will review the application and duly advise the applicant in writing when it has:

      (a) Granted the application without conditions;
      (b) Granted the application subject to conditions specified by the CBB; or
      (c) Refused the application, stating the grounds on which the application has been refused and the process for appealing against that decision.
      Amended: July 2007

    • AU-1.1.8

      Detailed Rules and Guidance regarding information requirements and processes for licenses can be found in Section AU-5.1. As specified in Paragraph AU-5.1.12 and in accordance with Article 44(e) of the CBB Law, the CBB will provide a formal decision on a license application within 60 calendar days of all required documentation having been submitted in a form acceptable to the CBB.

      Amended: July 2007

    • AU-1.1.8A

      In granting new licenses, the CBB will specify the type of regulated insurance servicesG for which a license has been granted, and include further conditions in relation to the license such as the class of business authorised, whether the insurance firmG is operating on a conventional or takaful basis, limited to reinsuranceG or licensed as a captive insurerG .

      Added: July 2007

    • AU-1.1.9

      All applicants seeking an insurance licenseG must satisfy the CBB that they meet, by the date of authorisation, the minimum criteria for licensing, as contained in Chapter AU-2. Once licensed, insurance licenseesG must maintain these criteria on an ongoing basis.

      Amended: July 2007

    • AU-1.1.10

      An insurance licenseeG must not carry on any commercial business in the Kingdom of Bahrain or elsewhere other than insurance business and activities directly arising from or incidental to that business.

    • AU-1.1.11

      In instances where an insurance licenseeG carries on a commercial business, at the time where the Insurance Rulebook becomes effective, the insurance licenseeG must notify the CBB to establish the transitional rules in relation to this prohibited activity (refer to Paragraph ES-2.2.1).

      Amended: July 2007

    • AU-1.1.12

      Activities 'directly arising from or incidental' to an insurance firm'sG business, for instance, will depend on the type of insurance provided by an insurer. By way of example, an insurance firm providing health insurance may show a connection with owning and managing hospitals, an insurer providing insurance that covers damage to motor vehicles may reasonably be able to own accident repairers or garages. Insurers should consult the CBB in relation to their own circumstances in determining if an activity directly arises from or is incidental to their insurance business.

      Amended: July 2007

Back to top