Marcel Omar Papp

For Takaful, Financial Constraints Make for a Rough Growth Path

Takaful, or Islam-compliant insurance, operators will have to center the attention on underwriting quality, cost management and investment discipline as financial performance is still a challenge for many markets in the current fluctuating investment environment.
Marcel Omar Papp, head of retakaful at Swiss Re, stated that investment is one challenge for takaful operators, who tend to count on equities or real estate.
Takaful operators generally raise capital through debt, equity or decreasing risk. Papp added that most operators "seem to be well capitalized" as many companies have only been set up in the past few years and their business volumes are not yet important.

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