Munich Re writes Retakaful business – Retakaful branch opens in Malaysia
Munich Re has opened a branch in Kuala Lumpur which is entirely devoted to Retakaful business. Retakaful, the name given to the Islamic form of reinsurance, is based on the principles of Islamic law (Shari’ah). The Munich Re Retakaful branch, Kuala Lumpur offers General Retakaful (as an alternative to non-life reinsurance) and Family Retakaful (as an alternative to life reinsurance) that complies with Shari’ah principles. Munich Re sees this as an area with major growth potential.
1.3 billion Muslims – 20% of the global population – make up the second-largest religion in the world. Islam is the state religion in some 40 countries. The Takaful (Shari’ah-compliant alternative to insurance) market is currently thriving, with growth rates in double figures. Munich Re’s Retakaful initiative caters for the needs of this client group. The Group’s Retakaful branch will initially write business in Malaysia but it will extend the scope of its activities to other Southeast-Asian countries and beyond in the near future.
Ludger Arnoldussen, member of the Board of Management of Munich Re: "We already enjoy very good relations with our clients in the Islamic world. Writing Retakaful business via our new branch will broaden and enhance those relations, giving us access to additional fields of business and new clients. This is a further step in our Changing Gear programme and will speed up the pace of profitable growth at Munich Re."
Under the (Re)Takaful system, the insureds form a community which attaches great significance to mutual support and solidarity. Premiums are therefore paid as a kind of donation to help members of the community who sustain losses. In addition to this communal risk-sharing, surpluses are placed at the disposal of the community. Premiums are invested according to strictly Islamic principles (interest is prohibited and sectors such as gambling or alcohol excluded). Most of the profits are also returned to the community. The (Re)Takaful company receives a fee for managing the funds.
signed Dr. Arnoldussen signed Dr. Lawrence
This media information contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of Munich Re. The company assumes no liability to update these forward-looking statements or to make them conform to future events or developments.