For Takaful, Fiscal Constraints Mean a Rough Growth Path: BestWeek Asia-Pacific, Nov. 29, 2011

Takaful, or Islam-compliant insurance, operators will need to focus on underwriting quality, cost management and investment discipline as financial performance remains a challenge for many markets in the current fluctuating investment environment, according to the most recent edition of BestWeek Asia-Pacific.

Investment returns are low under current economic conditions, so takaful operators have to rely more on underwriting profit, said Marcel Omar Papp, head of retakaful at Swiss Re.

Also in BestWeek Asia-Pacific, a solvency margin decline in the third quarter is driving New China Life Insurance Co. Ltd., the country’s fourth-largest life insurer, to start its initial public offering and preliminary price consultation activities for its Chinese A-share (Shanghai) and overseas H-share (Hong Kong) offerings in an effort to avoid potential regulatory limitations on its business operations due to inadequate capital, according to the insurer.

The 29 November edition is available at www.bestweek.com/asia and www.bestweek.com.

Other features of this issue include a story on how New Zealand’s new licensing requirements are expected to restructure the insurance sector, and a Best's Underwriting Guide Snapshot on aquariums.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, visit http://www.ambest.com/sales/BestWeek.

Founded in 1899, A.M. Best Co. is the world's oldest and most authoritative insurance rating and information source.