XL Group and Cobalt Underwriting launch Shariah-compliant equine product at Lloyd's
Source: Asia Insurance Review | May 2015
XL Group, together with specialist Shariah-compliant managing general agency Cobalt Underwriting, has launched a takaful product available through Lloyd’s of London.
The cover is an equine product which responds to named perils – mortality, theft, infertility and permanent disability – among other risks.
Horses are frequently moved around the globe, participating in a full calendar of events. Many of these horses are highly prized, crowd-drawing Arabian stallions coming from long and distinctive blood lines.
Lloyd’s first Shariah-compliant product
Mr Richard Bishop, CEO of Cobalt Underwriting said: “We are delighted to be able to offer the first Lloyd’s Shariah-compliant product and provide our clients with access to secure Shariah-compliant insurance coverage in what is a very specialised and exciting market. It is also another clear sign of the London market’s ability to deliver innovative products that meet the changing needs of clients across the world in the way they want them to be both structured and delivered.”
Mr Guy Morrison, Chief Underwriting Officer, Equine at XL Group said: “Today the movement of horses is supported by a highly specialised shipment and logistics industry. But travel, with varying climate and handling conditions, exposes these animals to a raft of risks.”
He added: “Until now, owners, especially those of Arabian horses, have not had the opportunity to insure their treasured animals in a Shariah-compliant manner. We hope this coverage will give owners the reassurance that their horses are well covered when participating and supporting the vibrant equine industry at events around the world.”
Lloyd’s Director of Global Markets Vincent Vandendael said: “It’s very positive progress to see the Lloyd’s market providing its first Shariah-compliant insurance coverage. Takaful insurance products are an important offering to our customers and business partners in a growing number of markets around the world. It is great to see the market adapting to our customers’ needs and innovating with new products such as this. Lloyd’s unique structure means we are ideally equipped to provide Shariah-compliant insurance and reinsurance as we continue to expand globally.”