Pakistan: Country's first Islamic reinsurance service approved

Source: Middle East Insurance Review | Nov 2018

The Securities and Exchange Commission of Pakistan (SECP), the country’s capital market regulator, has granted approval to Pakistan Reinsurance Company Limited (PRCL) to conduct retakaful window operations as part of its efforts to boost the fledgling takaful sector.

Since its formation in 2002, PRCL has been the country’s only reinsurer, offering reinsurance to the general insurance sector of Pakistan. However, until now, there has been no entity in Pakistan which could provide retakaful cover for the takaful and Islamic reinsurance window operators, according to local media reports.

The authorisation given to PRCL to conduct retakaful window operations has opened the doors to a new business opportunity for the state-owned reinsurer.

This will also enable the locally established takaful operators to obtain retakaful cover from within Pakistan at competitive terms without the outflow of capital from the country in the form of retakaful premium.

PRCL is rated AA by JCR VIZ, and authorisation to conduct retakaful operations will pave the way not only for its future growth, but also for the insurance and takaful sectors of Pakistan. M

Comment | Print

Name*

Email*

Comment*

Code Verification*

Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.