The Bahrain Monetary Agency (BMA) has published a consultation paper, setting out proposed rules allowing captive insurers to establish in Bahrain. These would be the first such rules in the Gulf Cooperation Council (GCC) region, and are aimed at meeting demand from corporates based in the GCC and the wider Middle East and South Asia region wishing to establish a captive insurer.
The consultation period runs until May 11. Currently, corporates based in the Middle East and South Asia wishing to establish captives have no local, reputable financial center in which to base such an entity.
Captives insure the risks of their parent's group rather than those of third parties, and they are generally managed by professional management companies rather than having their own staff. Captives are a well-established tool, and are used by many leading corporates to complement third party insurance as part of their overall risk management strategy. — (menareport.com)
© 2003 Mena Report (www.menareport.com )