*KARACHI: The Securities and Exchange Commission of Pakistan (SECP) hasgranted approval to the country’s sole reinsurer to offer sharia-compliantreinsurance, part of efforts to boost the fledgling Islamic insurance(takaful) sector.*
The SECP said it had authorised Pakistan Reinsurance Co to open a takafulwindow, which would help boost new business opportunities for thestate-owned firm.
The move would enable local takaful companies to obtain retakaful coverwithin Pakistan, avoiding outflow of premiums to reinsurance marketsoverseas, the SECP said.
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Takaful is seen as an important bellwether of consumer appetite for Islamicfinancial products. It is based on the concept of mutuality, where atakaful company oversees a pool of funds contributed by policyholders fromwhich claims are paid.
