Conditions to create a ReTakaful company
Wednesday, 02 28 2018, Category: Insurance and Reinsurance, Country: Egypt
Mr. Abdel-Raouf Kotb, Managing Director of the Egyptian Saudi Insurance House indicated the necessity of focusing on the establishment of a commercial-traditional reinsurance company in Egypt. However, there is a difficulty in securing the capital of such a company. This company should take advantage of both the commercial and the Takaful market noting that the Sharia supervisory system allows Takaful companies to cede business to commercial companies if there are no ReTakaful companies, which can cover these operations.
Moreover, Mr. Kotb said that there are specific financial requirements to establish a ReTakaful company noting that there are global ReTakaful providers such as Hannover Re, Africa Re, and Munich Re that have all a strong solvency. However, this capacity is limited given the needs of direct Takaful operators.
Source: Alam Al Mal