The Islamic finance industry as a whole is poised to benefit from the rapid growth of family takaful into a dominant position.
Malaysian Reinsurance tie-up with the Singapore branch of Pacific Life Re Ltd, the company aims to attain a sustainable long-term growth through the capability to write both family and general retakaful businesses.
Family takaful certificate in force is forecast to reach 14.3 million in comparison to 13.8 million for life insurance, which translates to a family takaful penetration rate of 37.1% compared to 35.8% for life insurance penetration, according to statistics from Insurance Services Malaysia Bhd. Based on the present rate of higher annual growth, our internal forecast indicates that family takaful will exceed life insurance in the number of certificates in force by 2030.
The MoU signifies the first strategic partnership between the two companies, which will enable Malaysian Re to provide sustainable family retakaful solutions to family takaful operators through its retakaful division, Malaysian Re Retakaful Division (MRRD).
The collaboration is expected to expand Malaysian Re’s access to international research and data through the usage of the underwriting technology powered by Pacific Life Re’s fully owned subsidiary, UnderwriteMe.
It will also allow the company to offer competitive and innovative products and services to its clients in the future.
Malaysian Re, the largest national reinsurer in South-East Asia by assets, has a financial strength rating of A by Fitch Ratings Inc and A- by AM Best, while Pacific Life Re, a global life reinsurer, is rated AA- (stable) by Standard & Poor’s Financial Services LLC.
No comments:
Post a Comment