AXA Insurance and Cobalt Underwriting have joined hands to create a new insurance product for the real estate sector, which will be Shariah-compliant.
To be distributed through brokers, the newly launched policy is an add on to AXA’s existing real estate offering.
AXA said that it has created a new premium payment and claims processes to make sure that the product complies with the key principles of Islamic insurance.
The Islamic insurance principles desire mutual co-operation between policyholders and does not permit insuring of assets or business involved in prohibited Islamic activities, such as gambling.
Under the arrangement, AXA will directly manage the trading and underwriting of the product and leverage Cobalt’s Shariah expertise. The in-house Shariah scholars of Cobalt will provide AA with Shariah compliance certification.