• CIB 1 CIB 1 GENERAL PROVISIONS

    • CIB 1.1 Application

      This Rulebook shall apply to Captive Insurers subject to alternative provision in these Rules or where the context otherwise requires.

    • CIB 1.2 CIB 1.2 Captive Insurance Business

      • CIB 1.2.1

        Captive Insurance Business means the business of effecting or carrying out Contracts of Insurance as a Class 1, Class 2, Class 3 or Class 4 Captive Insurer.

      • CIB 1.2.2

        For this purpose, a Class 1, Class 2, Class 3 or Class 4 Captive Insurer may effect or carry out contracts that are limited to contracts of reinsurance for risks insured by the Cedant.

    • CIB 1.3 CIB 1.3 Classes of Captive Insurance Business

      • CIB 1.3.1

        A Captive Insurer is an Authorised Person permitted under the conditions of its Financial Services Permission to carry on Captive Insurance Business as a Class 1, Class 2, Class 3 or Class 4 Captive Insurer.

      • CIB 1.3.2

        An Incorporated Cell Company may carry on Captive Insurance Business through some or all of its Cells (those Cells carrying on Captive Insurance Business being a Class 1, Class 2, Class 3 or Class 4 Captive Cell, as the case may be). References to a Captive Insurer in these Rules shall be construed to include, where relevant, an Incorporated Cell Company maintaining one or more Captive Cells.

      • CIB 1.3.3

        An insurer that is not incorporated in the ADGM cannot be a Captive Insurer.

    • CIB 1.4 Class 1 Captive Insurer

      A Class 1 Captive Insurer is a Captive Insurer that is permitted under the conditions of its Financial Services Permission to effect or carry out Contracts of Insurance only for risks related to or arising out of the business or operations of the Group to which the insurer belongs.

    • CIB 1.5 Class 2 Captive Insurer

      A Class 2 Captive Insurer is a Captive Insurer that is permitted under the conditions of its Financial Services Permission to obtain no more than 20% of its Gross Written Premium from third party risks arising from business or operations that are Closely Linked to the business or operations of the Group to which the insurer belongs.

    • CIB 1.6 Class 3 Captive Insurer

      A Class 3 Captive Insurer is a Captive Insurer that:

      (a) is permitted under the conditions of its Financial Services Permission to effect or carry out Contracts of Insurance only for risks related to or arising out of the business or operations of persons who engage in similar, related or common: (i) business; (ii) activities; (iii) trade; (iv) services; or (v) operations; and
      (b) is owned by the persons mentioned in paragraph (a) or by a Body Corporate of which all such persons are members.

    • CIB 1.7 CIB 1.7 Class 4 Captive Insurer

      • CIB 1.7.1

        The Regulator may decide that any entity that does not meet the requirements for a Class 1 Captive Insurer, Class 2 Captive Insurer or Class 3 Captive Insurer is a Class 4 Captive Insurer.

      • CIB 1.7.2

        Without limiting Rule 1.7.1, the Regulator may take into account the following matters in deciding whether an entity is a Class 4 Captive Insurer:

        (a) the business rationale for making the entity a Captive Insurer;
        (b) the use or non-use of the entity as a risk management tool;
        (c) the nature of the interests of the shareholders or members of the entity and whether they are aligned, or have some commonality with, the policyholder;
        (d) any unique or expert knowledge of the shareholders or members of the entity about the risks to be insured;
        (e) the appropriateness of the structure for the proposed activities or whether the business is more akin to a commercial insurer; and
        (f) whether the entity provides insurance to policyholders in relation to activities connected, conducted, controlled, related, managed, serviced or sold by the shareholders or members of the entity to these policyholders.

    • CIB 1.8 CIB 1.8 Captive Insurance Management

      • CIB 1.8.1

        A Captive Insurance Manager is an Authorised Person permitted under the conditions of its Financial Services Permission to carry on Captive Insurance Management.

      • CIB 1.8.2

        Captive Insurance Management is the administration of, and exercise of, managerial functions for a Captive Insurer and includes the administration of Contracts of Insurance for the insurer.