FAQs

What are you?

The world’s first Underwriting Agency providing Shariah-compliant commercial insurance and reinsurance cover to global clientele.

Where are you located?

In the City of London.

Who is behind you?

We are backed financially by Capita, a FTSE 100 company who are a leading provider of outsourced business processes who will provide all back office processing ensuring we can provide a robust and sustainable service, and Bank of London & The Middle East, a leading UK based Islamic Financial Institution and a number of UK based individuals with extensive experience of either Islamic Finance or the Insurance industries.

Are you regulated?

Yes, by the Financial Conduct Authority.

What lines of business will you write?

Property, Construction, Casualty, Financial and Professional Risks (including Financial Institutions), Fine Art & Specie, Marine & Trade Credit

Do you provide Treaty Reinsurance?

No, we only provide facultative cover, either directly if permitted, or where required, as facultative reinsurance (retakaful)

Are you yourselves Shariah-compliant?

Yes, we have a Shariah Board, chaired by Sheikh Nizam Yaquby and employ our own in-house Scholar Sheikh Zubair Miah.

Why have you got Scholars in-house?

The respected Scholars are few in number and are constantly moving around the globe.  This makes getting opinions a slow process. By having an in-house Scholar we can provide this advice swiftly and, more importantly, in a consistent way on behalf of all supporting markets.

Do you carry risk?

No, we are an underwriting agency providing Shariah-compliant insurance based on the London Market Subscription model via global London based carriers operating Islamic “windows”.

What is your security then?

Capacity is provided by established global insurers, with a minimum S&P rating of A.

Is your model that of a Takaful?

Our capacity is constructed using the syndicated placement model that is unique to the London Market and uses all the underlying principles of Takaful, but structured to comply with the requirements of the UK regulatory and fiscal environment.  This model enables us to provide scalable capacity by class of business, whilst maintaining Shariah integrity.

Is this model approved by the Scholars?

Yes, we have a ruling (fatwa) provided by our Shariah Supervisory Board to prove it is.

I’ve heard that Shariah compliant insurance involves mutuality.  Does this mean that might be a call if funds are not sufficient?

This is a popular misconception.  Whilst there is a concept of mutuality under the principles of Shariah risk carrying, this differs from the principle of mutual funding developed in the conventional insurance market, as uncertainty is not allowed. Therefore, any shortfall in funds is covered by the carrier’s own capital until such time that it is reimbursed out of future surplus thus ensuring that the contribution is limited to the amount paid at the time the risk is bound.

How does your cover differ from normal conventional cover?

There are subtle differences, but coverage is broadly identical.

How do we know what is being provided is Shariah-compliant?

All our policy documentation will contain a fatwa from the our Shariah Supervisory Board to confirm that the cover is Shariah-compliant.

Can we come directly to you for a quote?

No, you will need to employ the services of an Insurance Broker to assist you in the placement of the business with us.  We currently will only trade with broking companies that have a London presence, so if you are a broker located overseas with no London organisation, you will need to find someone in London to assist you.

We don’t have a relationship with a London broker, can you help?

Yes, we have relationships with a number of well recognised global and international brokerages.  We shall be happy to share their details with you.

Can a risk be insured on a partly Shariah-compliant basis?

Yes.  We can provide cover either as a quota-share or as an excess layer.

 What are the differences in the placement of cover?

Risk is placed in exactly the same way as any conventional cover placed in the London Market.  The only difference arises when it comes to the payment of premium contribution.  In order to keep the transaction Shariah-compliant, all premium contributions must be paid directly to Cobalt from either the client or cedant.

I am a broker. Does that mean there is no brokerage?

If you work for commission, this will be included in the premium contribution and will be paid to you by Cobalt once payment is received from the client or cedant.

What about Claims?  Will they be handled differently?

Claims will be handled in exactly the same way as that of the conventional market.  Claims will be submitted to Cobalt, who will establish liability in conjunction with capacity providers and then make settlement in accordance with policy conditions.

However, before payments are made, the claim will be reviewed by the Scholars to ensure that the client is made aware of any aspect of the claim that might itself be deemed non-Shariah, and to give them the opportunity to decide whether to accept any non-Shariah settlement.

Will claims be settled via the Broker?

No, like the payment of premium contributions, all claim settlements will be paid directly to the client or cedant.

Need to know more?

Give us a call.- 020 3642 0200