BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



Location: Central Bank of Bahrain Volume 3—Insurance > Part A > Business Standards > CA Capital Adequacy > CA-A Introduction > CA-A.1 Purpose > CA-A.1.3
  • CA-A.1 Purpose

    • CA-A.1.1

      This Module presents requirements that have to be met by insurance licenseesG , with respect to the level of capital they must maintain. Condition 5 of the Central Bank of Bahrain ('the CBB') Licensing Conditions (cf. Chapter AU-2.5) requires insurance licenseesG to maintain adequate financial resources, in excess of the minimum requirements specified in Module CA (Capital Adequacy).

      Amended: January 2007

    • CA-A.1.2

      The requirements specified in this Module vary according to the Category of insurance licenseeG concerned, the volume of business undertaken and its inherent risk. The purpose of such requirements is to ensure that insurance licenseesG maintain levels of capital sufficient to absorb unexpected losses, within a reasonable confidence interval. The capital levels specified here, in other words, are not sufficient to absorb all unexpected losses. Insurance licenseesG are also required to make their own assessment of the prudent level of capital that they need to hold.

      Amended: January 2007

    • CA-A.1.3

      This Module covers requirements to be met by both conventional and Takaful insurers. Specific requirements for Takaful firmsG are given in Chapter CA-8.

      Amended: January 2007
      Amended: October 2008

    • Legal Basis

      • CA-A.1.4

        This Module contains the CBB's Directive (as amended from time to time) relating to the capital adequacy of insurance licenseesG , and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all insurance licenseesG .

        Amended: January 2011
        Adopted: January 2007

      • CA-A.1.5

        For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

        Adopted: January 2007

Back to top