Munich Re Syndicate (MRS) Labuan has launched a retakaful window, making it the first and only retakaful syndicate on the Labuan platform.
The retakaful window will allow MRS Labuan to enhance its reinsurance capabilities in the local market. The Malaysian insurance industry has grown in prominence, size, and importance, and MRS Labuan is poised to capture this growth with its continued proactive approach.
New business contributions for family takaful in Malaysia increased by 7% to MYR6.59bn ($1.6bn) in 2020, revealed the Malaysian Takaful Association earlier this month. Gross written contribution of the general takaful business increased 4.4% to MYR3.46bn last year.
Labuan Financial Services Authority (FSA) approved the retakaful window facility for MRS Labuan to write Shariah-compliant risks with effect from January 2021.
The Syndicate is working closely 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. Being the first – and only – Lloyd’s syndicate on the Labuan platform, we look forward to partnering with companies in Malaysia to help them fulfill their reinsurance needs,” said Mr James Ng, managing director of MRS Labuan.
This launch of the retakaful window is in line with the encouragement from the Malaysian government to market products that are compliant with Shariah law.
MRS is one of the major Marine and Specialty insurance underwriters at Lloyd’s of London and is known in the industry for the quality of its underwriting and claims handling since it began operating in 1977. It has been part of Munich Re since 1997 and currently operates under the holding of Munich Re Specialty Group. Also included is Munich Re Syndicate Singapore (MRSS), established in 2000, which is also committed to providing the highest quality service to clients in the Asia Pacific region. The Singapore office is the underwriting hub for the Asia Pacific region.