Malaysian Reinsurance Berhad (Malaysian Re) and the Singapore branch of Pacific Life Re Limited have signed a Memorandum of Understanding (MoU) to provide retakaful products to Family Takaful Operators.
The MoU was signed by Zainudin Ishak, President and Chief Executive Officer (CEO) of Malaysian Re and Andrew Gill, Managing Director Asia & Australia of Pacific Life Re, and is the first strategic partnership between the two reinsurers.
Retakaful is the Islamic alternative to reinsurance, and through this partnership, Malaysian Re will provide family retakaful solutions through its Malaysian Re Retakaful Division (MRRD).
“We commenced our venture into the retakaful business in 2016 by providing general retakaful solutions to our customers. The formalisation of the strategic partnership today marks a milestone for us as we expand our business into family retakaful. We are excited and ready for this business expansion, and are positive that it will be a growth catalyst for Malaysian Re.
“MRRD has access to Malaysian Re’s best underwriting practices and market reach. This collaboration with Pacific Life Re signifies that we are on right path to being a strong family retakaful provider,” said Ishak.
Under the terms of the MoU, Pacific Life Re will provide support for the retakaful unit’s Family Takaful business through its technical pricing, underwriting, product development, experience analysis, and global insights.
Malaysian Re is hopeful that the agreement will serve to expand its access to international research and data via the use of the underwriting technology that is powered by Pacific Life Re’s subsidiary, UnderwriteMe.
Gill commented: “We are delighted to support Family Takaful solutions in Malaysia as we continue to expand our footprint in Asia. By leveraging on Pacific Life Re’s comparative advantages such as superior data insights and leading technology through UnderwriteMe, we are confident that Malaysian Re will further enhance its market-leading offering to its Family Takaful Operators clients.”
Furthermore, the new partnership is expected to benefit both reinsurers in terms of growth and as a result of the increased demand for takaful and retakaful solutions. According to reports, by 2030, it is forecasted that Family Takaful will overtake Life Insurance in terms of number of certificate in-force.