The Central Bank of Bahrain has issued new directives to insurance companies requiring the establishment 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 prepare the relevant regulatory reports.
These new directives include two phases of implementation, the first of which requires companies to appoint a Bahraini actuarial analyst before the end of June, 2023, provided that they are accredited by a globally recognized institute of actuaries. This will require the appointment of a Bahraini qualified actuary before the end of June 2029.
The Central Bank of Bahrain issued these directives in conjunction with the launch of the joint initiative between the Labor Fund (Tamkeen), the Institute of Actuaries in London, and Bahrain Institute of Banking and Finance to prepare and employ a number of Bahraini cadres in the actuarial sciences to work in the country’s insurance companies.
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 made in line with IFRS 17, as the application of this standard will depend on the estimates and recommendations of the actuary appointed by the company.
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.”
“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 specialisations that enhance the pioneering position and the distinguished financial position of the Kingdom of Bahrain”.
