The Bahrain Monetary Agency (BMA) has issued a consultation paper, setting out proposed conduct of business rules for insurers licensed to operate in Bahrain. These rules will place Bahrain in the forefront of regulatory standards for insurance in the region.
These rules will regulate the key stages of a customer's interaction with an insurance company, to ensure that throughout the life of the relationship certain fundamental principles are applied. For instance, information provided to customers must be clear and not misleading, and claims must be handled fairly and promptly.
The consultation paper is the third in a series of consultations being undertaken this year by the BMA, as part of a major project to enhance Bahrain's regulatory framework for the insurance sector. A number of further consultations are planned for later this year and the early part of 2004.
"Consumers will benefit from these rules through the application of a clear set of basic standards, and ultimately this will help create a bigger market for our local insurance companies," said Executive Director of Financial Institutions Supervision at the BMA, Anwar
“We are pushing forward with our project to build a strong and responsive regulatory framework for insurance in Bahrain; and its implementation in 2004 will help consolidate Bahrain's position as a major centre for insurance in the region.”
The proposals have been developed with the assistance of specialist regulatory consultants, and are fully in line with standards applied in other leading insurance centers, Al-Sadah pointed out. The consultation period runs until October 31, 2003. — (menareport.com)
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