Regulatory Alerts2014-05-08
Enhanced Operational and Solvency Framework for Takaful and Retakaful Insurance Industry – Volume 3
The Central Bank of Bahrain issued this consultation document to finalize enhanced operational and solvency requirements for Takaful and Retakaful insurance companies. The framework mandates adequate pricing for motor and medical lines, clarifies Wakala fee structures and performance fee restrictions, and standardizes solvency calculations by combining shareholders’ and policyholders’ funds while addressing Qard Hassan treatment. Industry feedback on risk management functions, actuarial reporting, and receivables admissibility was reviewed, leading to confirmed rules that require full compliance by December 2014 through a phased implementation approach.
Share