LONDON - Tuesday, December 6th 2011 [ME NewsWire]
(BUSINESS WIRE)-- A.M. Best Europe – Rating Services Limited is requesting comment from market participants in the insurance industry and other interested parties on a draft of its methodology, “Rating Takaful (Shari’a Compliant) Insurance Companies.” The draft document is currently available in the methodology section of A.M. Best’s website. To access the draft document, please visit www.ambest.com/press/120503TakafulMethodology.pdf.
The draft criteria report updates A.M. Best’s February 11, 2008, report, “A.M. Best’s Rating Methodology for Takaful (Shari’a Compliant) Insurance Companies.” This update takes into consideration the changes reflective in the Takaful market, particularly regarding the increasing development of the regulatory framework within certain countries and the key issues relating to Takaful operating structures. Moreover, A.M. Best continues to emphasise the importance within Takaful companies to have a balanced approach for profit distribution and fee structure between shareholders’ and policyholders’ funds.
Regulation is regarded as extremely important in A.M. Best’s assessment of Takaful companies, as the strength of regulation varies significantly between jurisdictions and regulatory protection to policyholders in certain jurisdictions is unclear. Where regulation is deemed to be less transparent, A.M. Best will consider credit in the form of capital commitment from shareholders in favour of policyholders, such as ring-fencing assets to raise the capital adequacy of the Takaful fund to an appropriate level.
Furthermore, the report also highlights the treatment on Takaful windows and Takaful subsidiaries, given their increasing prominence within conventional insurers in countries where Takaful is becoming more prevalent.
A.M. Best will consider feedback from any interested parties prior to publishing its methodology report. Written comments can be submitted by email to rating.methodology@ambest.com, no later than 21 December, 2011.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company.Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.
Contacts
A.M. Best Co.
Mahesh Mistry, +(44) 207-397-0325
Associate Director
mahesh.mistry@ambest.com
Carlos Wong-Fupuy, +(44) 207-397-0287
Senior Director
carlos.wong-fupuy@ambest.com
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com
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