AXA partners with Cobalt Underwriting on new Shariah-compliant real estate policy

AXA Insurance has teamed up with Cobalt Underwriting to create a new Shariah-compliant insurance product for the real estate sector.

27 April 2018

Posted in Partnerships

by Leigh Jackson (see media contact)

  • The new product is a bolt on to AXA’s existing real estate offering
  • AXA underwrites policies directly with brokers and works with Cobalt to ensure risk and policy wording compliance with Shariah principles
  • Accounting and claims processes have been devised to adhere to the key principles of Islamic insurance

AXA Insurance has teamed up with Cobalt Underwriting to create a new Shariah-compliant insurance product for the real estate sector.

The new product, which is available now, is a bolt on to AXA’s existing real estate offering. The policy will be distributed via brokers.

AXA has devised new premium payment and claims processes to ensure the product adheres to the key principles of Islamic insurance, including mutual co-operation between policyholders and not insuring assets or business involved in prohibited Islamic activities, such as gambling.

As part of the partnership, AXA directly manages the trading and underwriting of the product and utilises Cobalt’s Shariah expertise. Cobalt employs in-house Shariah scholars who provide each client with Shariah compliance certification.

The new product is part of AXA’s wider strategy to bring relevant new products to under-served sections of the insurance market.

“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.” [Ryan Birbeck, Head of Real Estate Specialty, AXA Insurance]

“We are extremely pleased to establish a relationship with AXA, providing a Shariah compliant real estate product. 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 fascial assets, currently estimated to be around $3 trillion. 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.” [Anne Plumb, Head of Underwriting, Cobalt Underwriting]