Retakaful licences open for application to locals and foreigners in Malaysia

Qualified local and foreign players are invited to apply for retakaful licences in the country. 
Bank Negara deputy governor Datuk Zamani Abdul Ghani said the move was in line with Government efforts to expand the retakaful (reinsurance under Islamic principles) sector to complement the growth of the takaful industry. 
He said besides fulfilling the need for retakaful support for takaful operators, the new retakaful licensees would assist in reducing the industry’s dependency on conventional reinsurance support. 
They will also ensure that the technical knowledge is made more readily available and enhanced in the market, particularly in takaful and retakaful underwriting. 
The move would also promote product development and innovation, Zamani said in his opening address at the third International Convention on Takaful and Retakaful yesterday. 
“Bank Negara is thus inviting strong and qualified applicants to make Malaysia as their centre for retakaful activities,” he said. 
Under the Malaysian International Islamic Financial Centre (MIFC) initiatives, 10 financial institutions had so far received approval to set up international currency business units, and one institution approved to set up an international Islamic bank.