Policy is sold via brokers and aimed at the real estate sector.

Axa Insurance has teamed up with Cobalt Underwriting on a new Shariah-compliant real estate insurance product.

The insurer noted that the new product, which is available now and will be distributed via brokers in the UK, is a bolt on to its existing real estate offering.

Axa explained that it had devised new premium payment and claims processes to ensure the product adheres to the key principles of Islamic insurance.

It detailed that this includes mutual co-operation between policyholders and not insuring assets or business involved in prohibited Islamic activities, such as gambling.

Compliance
The partnership will see Axa directly managing the trading and underwriting of the product while utilising Cobalt’s Shariah expertise.

Cobalt employs in-house Shariah scholars who provide each client with Shariah compliance certification.

Ryan Birbeck, head of real estate specialty at Axa, commented: “We are always exploring ways to reach potential customers and, with overseas investment continuing to flow into the UK real estate sector, a Shariah-compliant insurance policy was an obvious addition to our suite of products.

“Cobalt Underwriting has a wealth of expertise in Islamic insurance, having worked with a number of the world’s largest Islamic banks, and will enable us to make significant in-roads into a market which is of growing importance.”

Benefit
Anne Plumb, head of underwriting at Cobalt Underwriting, continued: “Axa is one of the global leaders in insurance and we are confident this will be welcomed by the Islamic real estate sector.

“This sector represents a significant proportion of the global Islamic fiscal assets, currently estimated to be around $3tn.

“Axa’s Shariah compliant product is just what the Islamic real estate sector needs. We know this new product will benefit Islamic finance, providing the excellent security offered by Axa.”

For all the latest industry news direct to your inbox, sign up for our daily newsletter.