| June 11
June 11 One of the world's oldest insurance
brokers, Willis Group Holdings, will offer
sharia-compliant commercial real estate coverage in Britain for
the first time, helping address capacity constraints in the
Islamic insurance (takaful) sector.
Set up in 1828, New York-listed Willis will offer the
coverage through the Islamic insurance platform developed by
London-based Cobalt Underwriting, one of several initiatives
aimed at boosting London's credentials in the Islamic finance
"Hand in hand with the growth in Islamic finance is the
demand for sharia-compliant insurance cover, in particular for
real estate investors," said John Dilley, managing director of
the Willis real estate practice.
The policy retains price neutrality, meaning premiums are
equivalent to those in a conventional insurance policy, Willis
said in a statement.
In March, Cobalt signed up the European unit of QBE
to its platform, which follows religious guidelines such as bans
on interest and pure monetary speculation.
Cobalt's platform uses a syndication model to help spread
risk across a panel of underwriters, allowing multiple insurers
to pool their capacity while each can subscribe to their desired
level of risk though individual Islamic windows.
The risk is priced by a lead insurer and other firms must
then subscribe under similar terms, a similar approach to the
subscription model used in London's Lloyds insurance market.
(Editing by Andrew Torchia)