Local and foreign players invited to apply for retakaful license
Aug 29th, 2007 by Takaful
Source: Bernama, 29th August 2007
Qualified local and foreign players have been invited to apply for retakaful licenses in the country.
Making the announcement, Bank Negara Malaysia Deputy Governor Datuk Zamani Abdul Ghani said the move was in line with the government’s efforts to expand the retakaful (reinsurance under Islamic principles) sector to complement the growth of the takaful industry,
He said besides fulfilling the need for retakaful support for takaful operators, the new retakaful licencees will assist in reducing the industry’s dependency on conventional reinsurance support.
They will also ensure that the technical knowledge is made more readily available and enhanced in the market, particularly in takaful and retakaful underwriting.
The move will also promote product development and innovation.
“Bank Negara is thus inviting strong and qualified applicants to make Malaysia as their centre for retakaful activities,” Zamani said in his opening address at the third International Convention on Takaful and Retakaful here, Wednesday.
Zamani also said that under the Malaysian International Islamic Financial Centre (MIFC) initiatives, ten financial institutions have so far been granted approval to set up international currency business units, and one institution has been granted approval to set up an International Islamic Bank.
“The strong sukuk market in Malaysia that accounted for the two thirds of the global outstanding sukuk issued in 2007 would further provide a conducive environment for the MIFC activities,” he added.
Sukuk is increasingly becoming an important investment avenue for the takaful industry.