Malaysia: Upsurge of the takaful segment emboldens family retakaful partnership
Source: Middle East Insurance Review | Jan 2020
National reinsurer Malaysian Re has expanded into the family retakaful business with support from Pacific Life Re which will provide technical pricing, underwriting, product development, experience analysis and global insights. Both parties signed an MoU and entered into a partnership to provide sustainable retakaful solutions to family takaful operators.
The collaboration is expected to increase the national reinsurer’s access to international research and data through the usage of underwriting technology provided by Pacific Life Re’s fully-owned subsidiary UnderwriteMe.
It is also expected to benefit both parties in terms of business growth as a result of the encouraging upsurge of the takaful segment. In the year 2030, family takaful is predicted to overtake life insurance in terms of number of certificate in-force, according to Insurance Services Malaysia report.
“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,” said Malaysian Re president and CEO Zainudin Ishak.
The family retakaful solutions will be offered by the reinsurer’s retakaful division called Malaysian Re Retakaful division which underwrites general retakaful business.
Malaysian Re also underwrites all classes of general reinsurance business.
Meanwhile, London-headquartered life reinsurer Pacific Life Re works with (re)insurance clients and specialises in risks associated with life, critical illness, income protection, hospital cash and longevity products. M