AIG Enters Takaful Market

AIG has entered the Takaful market with launch of Bahrain-based AIG Takaful.

The company will provide a broad range of Shariah-compliant products in the areas of accident & health, motor, personal contents, property and casualty.

“The phenomenal growth of the Takaful market is something that AIG, as a market leader, recognizes.

We want to support this growth and offer socially responsible insurance solutions to consumers in this region,” said Charles Bouloux, chairman, AIG Takaful.

”AIG’s management has a philosophy of acting responsibly and providing quality service to corporations and consumers.

We have a recognised ability to introduce innovative and culturally sensitive products focused on local market conditions, and we believe that this will enhance the overall development of the Takaful industry in this region.”

AIG Takaful, was licensed by the Central Bank of Bahrain (CBB), formerly known as the Bahrain Monetary Agency, in July 2006.

The company’s Shariah Supervisory Board includes well-known Shariah scholars such as Sheikh Nizam Yaquby, Dr Mohammed Elgari and Dr Imran Usmani.

Takaful is an Islamic alternative to conventional insurance that works on similar lines to conventional insurance.

Money is commonly paid into a shared fund and losses are covered out of that shared pool of funds.

Like conventional insurance companies, takaful providers also invest part of their funds in assets, which in this case must be Shariah-complaint.

The value of the market was estimated to be around US $2 billion in premiums in 2003, of which 60% was general takaful.

According to HSBC, the market has the potential to be worth around US $14 billion in premiums by 2015.

AIG Takaful’s launch in Bahrain was attended by top officials from the Central Bank of Bahrain.

Rasheed Mohammed Al Maraj, the bank’s governor, said: “We welcome the interest shown by a leading firm such as AIG in supporting the growth of takaful and in choosing Bahrain as the headquarters for its takaful subsidiary.

CBB has worked hard to create a strong, market-friendly regulatory framework which, we believe, is essential for the sound growth of Bahrain’s insurance sector, including takaful, and a precondition for attracting reputable insurance companies to locate in Bahrain.”

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