XL targets Shariah compliant products
Through a binder relationship with Cobalt, an underwriting agency specifically created to provide Shariah compliant commercial insurance and reinsurance products, XL Group has assigned a team of underwriters to focus on this rapidly growing market.
It will offer Shariah compliant insurance cover to large corporate and middle market clients globally but with the exception of the US and Canada. Initially it will focus on property cover, with a maximum capacity of up to $300 million.
“We are delighted to be the first global insurer in the London market to offer commercial Shariah compliant insurance capacity to large and middle market companies via Cobalt Underwriting,” said Jason Harris, chief executive International P&C insurance for XL Group.
“This is a growing, untapped market and as we explore other product offerings, we are looking forward to help develop it.
“Working closely with Cobalt, which has a prominent Shariah advisory board, we are well placed to put our vast experience in Property risks to work for clients seeking this type of cover. While we expect a significant portion of the business to come in through the London market, our network, which allows us to serve clients in more than 140 countries, represents a strong asset in serving this important market segment.”
In 2011 it was estimated that total global Islamic financial assets stood at $1.631 trillion. The global Islamic financial services industry is valued at $1.357 trillion and continues to defy the global economic stagnation. The Sukuk asset class grew by 77 per cent to $85 billion in 2011 alone and the growth in the Islamic banking industry was put at 16.4 per cent for the year.
Richard Bishop, chief executive of Cobalt Underwriting commented: “Cobalt Underwriting is excited about the prospect of working closely with XL Group on this “market changing” initiative as they have demonstrated that their capabilities are ideally placed to serve the needs of our customers throughout the globe.
“We believe that XL Group has provided the capacity needed to encourage these customers to seek Shariah-compliant Property Insurance from us, and we look forward to developing and expanding what we can offer in the future.”