German company to offer Islamic re-insurance

20th September 2006, Comments 0 comments

20 September 2006, MUNICH - Munich Re, one of the world's main re-insurance groups, said Tuesday it was to offer policies in line with Islamic principles after obtaining a licence from Bank Negara of Malaysia. The so-called takaful system is a mutual fund that avoids interest and forms of risk-taking banned by sharia law. The German re-insurer is to offer insurance-company clients in Malaysia cover for both their life and non-life business. A Munich Re spokeswoman said the company saw business potential in

20 September 2006

MUNICH - Munich Re, one of the world's main re-insurance groups, said Tuesday it was to offer policies in line with Islamic principles after obtaining a licence from Bank Negara of Malaysia.

The so-called takaful system is a mutual fund that avoids interest and forms of risk-taking banned by sharia law.

The German re-insurer is to offer insurance-company clients in Malaysia cover for both their life and non-life business.

A Munich Re spokeswoman said the company saw business potential in other South-East Asian nations, India and the Middle East.

Re-insurers help insurance companies by spreading the risk burden on many shoulders.

DPA

Subject: German news

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