CBB Volume 3: Contents

Central Bank of Bahrain Volume 3—Insurance
Part A
High Level Standards
HC High-Level Controls
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Location: Central Bank of Bahrain Volume 3—Insurance > Part A > High Level Standards > HC High-Level Controls > HC-1 The Board > HC-1.5 Independence of Judgment > HC-1.5.1
  • HC-1.5 Independence of Judgment

    • HC-1.5.1

      The CBB requires Boards of insurance firmsG to include at least two independent non-executive members. For Bahraini insurance licenseesG , other than insurance firmsG , Boards must include at least one independent non-executive member.

      January 2011

    • HC-1.5.2

      In the case of a Bahraini insurance licenseeG , which is part of an overseas group, where there is sufficient independent scrutiny of the operations of the firm on a group wide basis, the CBB will consider exempting the licensee from the requirements of Paragraph HC-1.5.1.

      January 2011

    • HC-1.5.3

      Every director must bring independent judgment to bear in decision-making. No individual or group of directors must dominate the Board's decision-making and no one individual should have unfettered powers of decision.

      January 2011

    • HC-1.5.4

      Executive directorsG must provide the Board with all relevant business and financial information within their cognizance, and must recognise that their role as a director is different from their role as an officer.

      January 2011

    • HC-1.5.5

      Non-executive directorG s must be fully independent of management and must constructively scrutinise and challenge management including the management performance of executive directorG s.

      January 2011

    • HC-1.5.6

      At least half of an insurance licensee'sG Board should be non-executive directorG s and at least three of those persons should be independent directorG s. (Note the exception for controlled companies in Paragraph HC-1.6.2 and for possible exemption under Paragraph HC-1.5.2.)

      January 2011

    • HC-1.5.7

      The chairman of the Board should be an independent directorG , so that there will be an appropriate balance of power and greater capacity of the Board for independent decision making.

      Amended: January 2012
      January 2011

    • HC-1.5.7A

      The chairman and/or deputy chairman must not be the same person as the CEO.

      Added: January 2012

    • HC-1.5.7B

      The chairman must not be an executive directorG .

      Added: January 2012

    • HC-1.5.8

      The Board should review the independence of each director at least annually in light of interests disclosed by them and their conduct. Each independent directorG shall provide the Board with all necessary and updated information for this purpose.

      January 2011

    • HC-1.5.9

      To facilitate free and open communication among independent directorsG , each Board meeting should be preceded or followed with a session at which only independent directorsG are present, except as may otherwise be determined by the independent directorsG themselves.

      January 2011

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