ReTakaful to meet solvency challenges of Takaful companies
Saturday, 10 15 2016, Category: Islamic Insurance, Country: World
Mr. Ahmed Arfeen Managing Director of the Egyptian Takaful Insurance Company (Property) said that the capital of Takaful companies and their reserves are not sufficient to face the risks, which they underwrite. Therefore, they need to distribute the risk by reinsuring risks at foreign companies. ReTakaful companies can help in this process.
He added in the ninth general conference of the International Federation of Takaful and Islamic insurance companies that Takaful companies need ReTakaful coverage especially in using Treaty facilities according to many factors such as the nature of participants, international dimension of activity, specialized risks, Sharia-compliance level and capital level of the company.
He clarified that ReTakaful necessitates an international dimension and deals with brokers instead of individuals, so it needs a high capital for ReTakaful companies of at least USD 250 million.
Source: Amwal Al Ghad