Takaful a growing market, says AIG
AIG UK has underwritten the first Shariah-compliant Warranty and Indemnity (W&I) Insurance Policy issued in the London M&A insurance market.
The policy was issued through Cobalt Underwritings, which also launched the first Lloyd’s Shariah-compliant political violence product in conjunction with Chaucer earlier this year.
AIG head of M&A, UK and London Market Angus Marshall said: “AIG was delighted to work with our strategic partner, Cobalt Underwriting, to provide a ground-breaking W&I insurance policy in compliance with Shariah principles. While AIG has previously issued Shariah-complaint W&I policies in the Middle East, we have not done so in the London M&A insurance market.”
The buyer of the policy underwritten by AIG UK was a Gulf-based financial institution run on Shariah principles. They acquired an industrial property in the North of England for an amount in excess of £24m ($31.6m).
Marshall also commented on the growing Takaful market, saying: “We estimate that Takaful insurance accounts for around 2% of the $1.8tn Islamic finance market – we now have an M&A insurance product that can service this growing market.”