Munich Re

Munich Re reinsures life portfolio for Iranian insurer Mellat

German reinsurer Munich Re has entered into an agreement with Iranian insurer Mellat Insurance and will cover Mellat's entire life insurance portfolio. For smaller insurers operating in emerging economies it is vital to have access to reinsurance capacity, in order to offset the risks they are assuming and maintain solvency strength. Iran’s Saman Insurance became the first insurer in the country to purchase life reinsurance from a foreign player after the removal of international sanctions in 2016, signing a deal with Munich Re in 2017.

Islamic insurance: tackling global hurdles

Ernst and Young state that the market for Takaful will extend to $12 billion this year.
The quest for security
It was hard for Takaful operators such as Takaful EM to acquire a Shariah-compliant re-insurance. Because it had a large potential, leading reinsurers such as Munich Re, Swiss Re or Hannover Re created Re-Takaful. It appears that Malaysian Takaful operators are world leaders.
Swiss Re, the second largest conventional re-reinsurer worldwide, thinks that the breakthrough of Takaful has only began.
Takaful expansion challenges
Ghassan Marrouche underlines the fact that the challenges for Takaful are in human resources. As demands raise, new distribution channels become inevitable.

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