The Central Bank of Bahrain (CBB) has issued draft rules for insurance aggregators, marking its first strategic move towards InsurTech.
CBB is one of the few central banks to have introduced rules relating to insurance aggregators which aim to establish Bahrain as a leading financial hub in the MENA region.
Mr Abdul Rahman Al Baker, Executive Director of Financial Institutions Supervision said, “The introduction of insurance aggregator rules is a first step for the CBB towards InsurTech, a technology led transformation of the insurance sector which is rapidly gathering momentum globally, especially due to demands from millennials.”
Insurance aggregators are intermediaries with an insurance broker’s licence which operate an online platform and hosted on a website or available as a smart device app which provides price comparisons and facilitates the purchase of insurance from several insurance licensees.
With the introduction of insurance aggregators, a customer is able to search for and choose quotes from several insurers on an electronic platform or a mobile device app, instead of obtaining quotes individually, and purchase insurance online from one of the insurers.