The Central Bank of Bahrain (CBB) has always strived to ensure that the industry remains healthy by providing a highly developed and robust regulatory infrastructure. In this respect, in October 2013, the CBB introduced enhanced rules on the Operational and Solvency framework for Takaful and Retakaful industry for consultation.
The industry was asked to review the new enhanced regulatory framework and submit their respective comments by 10 November 2013. In this regard, meetings were also held with the Takaful industry to facilitate their understanding of the new rules and successfully conclude the consultation process.
“The new enhanced framework has been drafted with an objective of strengthening the solvency position of the firms, enhancing operational efficiency of the business, and safeguarding the interest of all stakeholders”. He further added that “the new framework will ensure that the firms, both new to the business and incumbents, have adequate liquidity and are able to generate surplus through operational efficiency,” A. Rahman Al Baker, the Executive Director of Financial Institutions Supervision, said.
“This will help the Takaful firms to effectively compete with not only the other Takaful firms in the industry but also with the conventional insurance counterparts. After considering the views and comments received from the Takaful and Retakaful industry through the consultation process and meetings, it is expected that the new Takaful rules will be finalized and implemented by the end of 2013,” he added.