Munich Re Syndicate Labuan Limited (MRS Labuan) has announced the the launch of the first and only retakaful syndicate on the Labuan platform.
Labuan FSA approved the Retakaful Window facility for MRS Labuan to write Syariah-compliant risks with effect from January 2021.
It’s hoped the launch of the Retakaful Window will allow MRS Labuan to enhance its reinsurance capabilities in the local market.
The Syndicate is working with existing clients to refine wordings that will align to retakaful requirements. Coupled with digitalisation efforts internally to ensure business continuity since the start of COVID-19, it is also looking at digitalising its distribution model to cater to the evolving needs of clients in the market.
“The disruption caused by the COVID-19 pandemic has also created opportunities for product evolution and market diversification. In our continuous effort to innovate, we are excited to have launched the Retakaful Window and to be able to extend this capability to clients,” said James Ng, Managing Director, MRS Labuan.
“Being the first – and only – Lloyd’s syndicate on the Labuan platform, we look forward to partnering with companies in Malaysia to help them fulfil their reinsurance needs.”
“We have a deep understanding of the unique needs of the Malaysian insurance market and are strongly committed to Malaysia’s retakaful sector,” he added.
This launch of the Retakaful Window is in line with the encouragement from the Malaysian government to market products that are compliant with Syariah Law.
According to The Malaysian Takaful Association (MTA), for the nine months ended 30 September 2020, Malaysia’s takaful industry added 573,718 new certificates – a 7.2% increase compared to the same period in 2019.