Page 18 - The Insurance Times March 2025

alongside reporting its full year 2024 ter containing the directive to Islamic
results, which were very strong once insurers on 19 February. Attention Subscribers
again, Munich Re provided an update A senior IDRA official said that the Please renew your Subscription of The
on the January 1st, 2025, reinsurance government is prioritising sukuk issu- Insurance Times Journal to receive
renewals, when around two-thirds of
ance to finance its projects, catering to copy of the journal uninterruptedly.
the company’s non-life reinsurance investors seeking shariah-compliant fi-
treaty business was renewed. You can now pay by GPAY, Phonepe,
nancial instruments, reported The
Overall, the reinsurer pulled back Business Standard. Paytm, Amazon, ICICI Pay, BHIM UPI
slightly as the volume of business writ- There are currently 16 Islamic insur-
ten declined by 2.4% year-on-year to
ance companies operating in the pri-
€15.6 billion. The carrier explained
that it “consistently discontinued busi- vate sector, comprising 12 family
takaful companies and four shariah-
ness that did not meet our expecta-
tions with regard to prices or terms and compliant general insurers.
conditions.”
Munich Re faces $1.3 bil-
In terms of price, Munich Re said that
as development was stable, overall, lion in claims from Los
the good price level of the reinsurer’s Angeles inferno
portfolio was maintained, with a slight
decrease of 0.6%. Munich Re expects about 1.2 billion
euros ($1.26 billion) in claims resulting
The reinsurer expects the environment from the Los Angeles wildfires, it said ,
to remain positive in the upcoming
representing the biggest loss reported
April and July renewals and noted that so far by a single European reinsurer
recent natural catastrophe events and for the January catastrophe.
subsequent losses, notably the Los An-
geles wildfires, “are clearly impeding a The wildfires killed more than two
softening of prices.” dozen people and destroyed or dam-
aged more than 16,000 structures,
charring an area bigger than Paris.
Bangladesh:Regulator di-
"They were clearly the most substan-
rects Islamic insurers to tial wildfire losses in the history of the

invest in sukuk insurance industry," Munich Re said. Sashi Publications Easy Payment
The Insurance Development and Regu- Munich Re, the world's largest rein- Modes :-
latory Authority (IDRA) has instructed surer, said that its estimate was a high i) UPI ID: SASHIBOOKS@KOTAK
Islamic insurance companies to invest degree of uncertainty because the ii) GPAY: 9830171022@okbizaxis
in government Islamic bonds (sukuk) or losses were complex. iii) PAYTM: 9830171022@paytm
securities.
Analysts have estimated insurance iv) NEFT: Current A/C
Under the directive, Islamic life insur- claims across the industry could total 402120110000327 of 'SASHI
ance companies must allocate at least $45 billion. Hannover Re, another Ger- PUBLICATIONS PRIVATE
30% of their overall investments to man reinsurer, has said that it could LIMITED, Bank of India, VVK
such instruments while Islamic general face claims claims amounting to 700 Road Branch., Kolkata, India,
insurance companies are required to million euros. IFSC Code : BKID0004021
invest a minimum of 7.5%.
Fitch, the credit ratings company, has v) Credit Card:
Previously, the mandatory investment said that European insurers had re- www.sashipublications.com
applied only to conventional insurers duced exposure to California after a
while shariah-based insurers were ex- spate of fires in 2017 and 2018 but For any query please call
empt. would still be "materially affected" by 9073791022/9883398055
www.sashipublications.com
IDRA director Abdul Majid issued a let- the 2025 fires because of their scale.

The Insurance Times March 2025 17