Islamic Finance

Takaful, retakaful gross contributions at Malaysia's Labuan IBFC rises more than 13% in 2020

Takaful and retakaful gross contributions at Malaysia's Labuan International Business and Financial Centre grew by more than 13% last year, its regulator told Salaam Gateway ahead of the release of its 2020 market report. 

Total premiums of the mid-shore IBFC's insurance and reinsurance sector grew more than 4%, a spokesperson said in an email.

221 insurance and insurance-related entities operated out of IBFC in 2020, out of which six were full-fledged (re)takaful operators and 44 were Islamic insurance windows.

In January, the Labuan Financial Services Authority approved Munich Re Syndicate's retakaful window, adding to the IBFC's Islamic insurance sector. 

Munich Re, a major marine and specialty insurance underwriter at Lloyd's of London, is the first Lloyds syndicate to operate a retakaful window on the Labuan platform.

Overall, Malaysia's takaful industry added 839,358 new certificates in 2020, an increase of 14.4% compared to 2019, according to the Malaysian Takaful Association. 

The family takaful line of business earned 6.59 billion ringgit ($1.61 billion) in new business contribution compared to 6.16 billion ringgit in 2019, and general takaful posted a 4.4% increase in gross written contributions to 3.46 billion ringgit. 

The penetration rate for family takaful rose to 16.9% last year from 15.9% in 2019. 

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