“We are always exploring ways to reach potential customers and, with overseas investment continuing to flow into the UK real estate sector, a Shariah-compliant insurance policy was an obvious addition to our suite of products.”
These were the words of real estate specialty head Ryan Birbeck when AXA Insurance’s new product was unveiled. Distributed via brokers, the policy bolsters the insurer’s existing real estate offering and is brought to market with the help of Cobalt Underwriting.
Using Cobalt’s Shariah expertise, AXA directly manages the trading and underwriting of the product, which is part of the latter’s wider strategy to bring relevant new policies to underserved market sections. The Lloyd’s coverholder, for its part, provides Shariah compliance certification through its in-house Shariah scholars.
“Cobalt Underwriting has a wealth of expertise in Islamic insurance, having worked with a number of the world’s largest Islamic banks, and will enable us to make significant in-roads into a market which is of growing importance,” added Birbeck.
AXA said it has devised new premium payment and claims processes to ensure that the product adheres to the key principles of Islamic insurance, including mutual cooperation between policyholders and not insuring assets involved in prohibited Islamic activities.
“We are extremely pleased to establish a relationship with AXA, providing a Shariah-compliant real estate product,” commented Anne Plumb, Cobalt’s head of underwriting. “AXA is one of the global leaders in insurance, and we are confident this will be welcomed by the Islamic real estate sector.
“This sector represents a significant proportion of the global Islamic fascial assets, currently estimated to be around $3 trillion. AXA’s Shariah-compliant product is just what the Islamic real estate sector needs.”
