CBB issues new directive to insurers
Central Bank of Bahrain (CBB) has issued new directives to insurance companies mandating the setting up of an internal actuarial unit within their organisation structure. In addition, all insurance firms must appoint in-house Bahraini competencies in preparation for qualifying them to become qualified actuaries licensed by recognised international actuarial institutes to carry out actuarial work and prepare the relevant regulatory reports according to the requirements of the CBB in this regard.
These new directives include two phases of implementation, the first of which requires companies to appoint a Bahraini actuarial analyst within a period not exceeding end of June, 2023, provided that the companies appoint and qualify them to be qualified actuaries that are accredited by a globally recognised institute of actuaries to carry out actuarial roles within insurance firms in fulfillment of the requirements of the second phase of these directives. Which requires the appointment of a Bahraini qualified actuary within a period not exceeding the end of June 2029.
It is worth noting that CBB issued these directives in conjunction with the launch of the joint initiative between the Labor Fund (Tamkeen), CBB, the Institute of Actuaries in London, and Bahrain Institute of Banking and Finance (BIBF) to prepare and employ a number of Bahraini cadres in the actuarial sciences to work within insurance companies in the Kingdom of Bahrain.
This initiative is also considered one of the important steps to prepare qualified Bahraini cadres in important specialties of the insurance sector.
This initiative is also in line with the efforts made to create employment opportunities for Bahrainis within the local financial market, which is one of the priorities of the Economic Recovery Plan of 2022-2026. In addition, to the issuance of the new IFRS 17 accounting standard effective in 2023, as the application of this standard will depend in particular on the estimates and recommendations of the actuary appointed by the company to prepare the financial statements according to the new accounting standard.
On this occasion, Abdul Rahman Al Baker, executive director of Financial Institutions Supervision, said, “CBB is keen to continue its efforts to develop the insurance industry keep pace with the best international standards.”
Al Baker added, “The purpose of this initiative and its legislation is not limited to providing job opportunities, but also aims to strengthen the insurance industry with qualified Bahraini cadres for important specialidations that enhance the pioneering position and the distinguished financial position of the Kingdom of Bahrain.”
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