XL Group and Cobalt Underwriting have launched the first Shariah-compliant product to be 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, XL said in a statement.
The need for Shariah-compliant equine insurance coverage has never been greater; 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, XL 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 specialized and exciting market,” said Richard Bishop, chief executive officer, Cobalt Underwriting, the managing agency that specializes in Shariah-compliant products.
“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,” he added.
Guy Morrison, chief underwriting officer, equine, at XL Group said: “Today the movement of horses is supported by a highly specialized shipment and logistics industry. But travel, with varying climate and handling conditions, exposes these animals to a raft of risks.”
Morrison continued: “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.”
“It’s very positive progress to see the Lloyd’s market providing its first Shariah-compliant insurance coverage,” according to Lloyd’s Director of Global Markets Vincent Vandendael.
“Takaful insurance products are an important offering to our customers and business partners in a growing number of markets around the world,” Vandendael added.
Source: XL Group
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