CBB to host key meeting of IAIS task force

Members of the IAIS Corporate Governance Task Force will gather in Bahrain on 24 & 25 July 2007 to advance their work on developing an international corporate governance framework for insurers. The team is focusing on those aspects of corporate governance which are specifically relevant for regulation and supervision of insurers and reinsurers, with a particular emphasis on the protection of policyholders' interests.

The meeting in Bahrain will be attended by representatives of 13 IAIS members, namely Netherlands, Bermuda, European Commission, France, Germany, Guernsey, India, Italy, Japan, Switzerland, UK and USA, besides Bahrain.

The meeting will also be attended by a number of observer members, representing over 15 countries and leading insurance firms.

The upcoming meeting will be the first of the IAIS Corporate Governance Task Force to be held in Bahrain.

The CBB was included in the Task Force when it was established in February 2007. The CBB is represented on the team by Mr. Nader Al Mandeel, Head, Local Insurance and Reinsurance Firms, at the CBB.

Bahrain is contributing actively to the Task Force through its focused task of developing overarching corporate governance principles related to actuary and external auditor.

"The CBB is delighted to host the forthcoming meeting of the Task Force, which is undertaking the critical task of formulating guidelines to ensure the soundness of not only individual insurance companies but financial systems as a whole," said Mr. Abdul Rahman Al Baker, Executive Director, Financial Institutions Supervision, at the CBB.

Effective management of risk, which is at the very core of sound corporate governance practices, has become crucial in an era of globalisation, deregulation and technological advancements, which are increasing the risks in insurance systems.

"Regulators around the world, thus, are placing a lot of emphasis on ensuring the well-being of companies, to preserve financial stability and a robust economy," said Mr. Al Baker.

In Bahrain, corporate governance guidelines are a key element of the CBB Insurance Rulebook, which is a comprehensive document that also covers such issues as segregation of shareholder and policyholder funds, capital adequacy and solvency, valuation of assets and liabilities and the conduct of business.

Mr. Al Mandeel said the Bahrain meeting would advance the work of the Task Force, which is due to submit a report to the IAIS annual meeting, due to be held in the US in October 2007.