CBB Volume 3: Contents
AU-2.2 Condition 2: Mind and Management
Insurance licenseesG with their Registered Office in the Kingdom of Bahrain must maintain their Head Office in the Kingdom. Overseas insurance licenseesG must maintain a local management presence and premises in the Kingdom appropriate to the nature and scale of their activities.
In assessing the location of an insurance licensee'sG Head Office, the CBB will take into account the residency of its Directors and senior management. The CBB requires the majority of key decision makers in executive management — including the Chief Executive OfficerG — to be resident in Bahrain. In the case of overseas licensees, the CBB requires the branchG or subsidiaryG of a foreign owned company to have a substantive presence, demonstrated by a level of staff and other resources sufficient to ensure adequate local scrutiny and control over business booked in the Bahrain branchG or subsidiaryG .Amended: July 2007
In the case of insurance licenseesG originally licensed as exempt companies, the CBB will consider the granting of temporary individual waivers on a case-by-case basis from the requirements in Paragraph AU-2.2.1. In all cases, the CBB's objective is to require all such companies that wish to remain licensed by the CBB, to have a suitable office in the Kingdom of Bahrain. This requirement means that knowledgeable staff should be resident in Bahrain.Amended: July 2007
Subject to CBB approval, an insurance licenseeG that is a captive (re)insurance company may maintain its Head Office or place of business at the offices of an insurance managerG appointed to manage its affairs.Amended: July 2007
The CBB's overall approach to captive insurersG is summarized in Module CI. The day-to-day operations of captive insurersG are typically outsourced to specialist captive managers, and Paragraph AU-2.2.4 allows for this possibility. The CBB requires captive managers providing services to CBB-licensed captive insurersG to be also licensed by the CBB and thus also to have a substantive presence within the Kingdom.Amended: July 2007
Amended: October 2007