AXA Insurance and Cobalt Underwriting have joined hands to create a new insurance product for the real estate sector, which will be Shariah-compliant.
To be distributed through brokers, the newly launched policy is an add on to AXA’s existing real estate offering.
AXA said that it has created a new premium payment and claims processes to make sure that the product complies with the key principles of Islamic insurance.
The Islamic insurance principles desire mutual co-operation between policyholders and does not permit insuring of assets or business involved in prohibited Islamic activities, such as gambling.
Under the arrangement, AXA will directly manage the trading and underwriting of the product and leverage Cobalt’s Shariah expertise.
The in-house Shariah scholars of Cobalt will provide AA with Shariah compliance certification.
AXA noted that the new offering form part of its wider strategy to bring “relevant new products to under-served sections” of the insurance market.
AXA Insurance head of real estate specialty Ryan Birbeck said: “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.
“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.”
Cobalt Underwriting head of underwriting Anne Plumb said: “We are extremely pleased to establish a relationship with AXA, providing a Shariah compliant real estate product. 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. We know this new product will benefit Islamic finance, providing the excellent security offered by AXA.”