Central Bank of Bahrain Captures Insurex 2007 Award for Captive Initiative
03-04-2007
The Central Bank of Bahrain (CBB) has won a key award for its regulatory initiatives in the area of captive insurance.
The Regulators’ Initiative of the Year Award for the CBB was conferred by Policy magazine during INSUREX 2007, an insurance conference held on 2 & 3 April 2007 in Dubai, UAE. The event was held under the patronage of Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance and Industry, and organized by Policy, a leading insurance publication.
The Regulators’ Initiative of the Year Award recognizes excellence in the formulation or enforcement of insurance standards in a jurisdiction by a regulator/supervisor or a distinguished year of achievement.
The Award was conferred on the CBB for its pioneering initiative in providing the Middle East & North Africa (MENA) region with:
The first legal framework tailored to meet the needs of captive insurers;
The first licensed insurance manager; and
The first licensed and operational captive insurance company.
The Award was received on CBB’s behalf by Mr. Nader Al Mandeel, Head, Local Insurance and Reinsurance Firms, at the CBB, during an awards dinner ceremony held on 2 April 2007.
“The CBB is delighted to receive this award, which is a demonstration of international recognition for the pioneering work being undertaken by the CBB in the area of insurance regulation,” said Mr. Tawfiq Shehab, Director, Insurance Supervision, at the CBB.
“The CBB is committed to the development and advancement of the conventional and Islamic insurance sector and to reinforce Bahrain’s status as the leading centre for insurance in the MENA region.”
Recent initiatives by the CBB have included the development of the Insurance Rulebook, issued in 2005, which sets out a comprehensive, clear, transparent and consistent regulatory environment for providers of insurance and insurance related services, including rules tailored for the Captive Market, he pointed out.
The CBB Insurance Rulebook also contains the region’s first comprehensive regulatory framework specific to Islamic insurance and reinsurance (takaful and retakaful) companies.
In addition to the insurance regulatory framework, the CBB worked with the Ministry of Industry and Commerce to create a legal framework that would reduce the regulatory burden on captive insurers. A resolution supporting the use of a Special Purpose Vehicle was passed in July 2005. This along with rules that recognised the different types of risks faced by captives, created a regulatory framework designed to meet the demands of a strong yet flexible environment for captives to strive in.
In 2006, the CBB worked with the first locally licensed insurance manager in the region, Ensurion, towards establishing the MENA region’s first captive insurer, Tabreed Captive Insurance Company, a wholly-owned subsidiary of UAE-based Tabreed, the region’s district cooling pioneer.
“The CBB is committed to maintaining its international reputation for sound yet market friendly regulation and supervision and we look forward to continuing to work with market players in providing an environment conducive to the growth and advancement of the financial services industry,” said Mr. Shehab.
In addition to the insurance regulatory framework, the CBB worked with the Ministry of Industry and Commerce to create a legal framework that would reduce the regulatory burden on captive insurers. A resolution supporting the use of a Special Purpose Vehicle was passed in July 2005. This along with rules that recognised the different types of risks faced by captives, created a regulatory framework designed to meet the demands of a strong yet flexible environment for captives to strive in.
In 2006, the CBB worked with the first locally licensed insurance manager in the region, Ensurion, towards establishing the MENA region’s first captive insurer, Tabreed Captive Insurance Company, a wholly-owned subsidiary of UAE-based Tabreed, the region’s district cooling pioneer.
“The CBB is committed to maintaining its international reputation for sound yet market friendly regulation and supervision and we look forward to continuing to work with market players in providing an environment conducive to the growth and advancement of the financial services industry,” said Mr. Shehab.
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