Deal includes financial institutions, professional indemnity and management liability cover

Insurance group XL has agreed to provide financial lines capacity to specialist sharia-compliant managing general agency (MGA) Cobalt Underwriting.

The deal includes cover for financial institutions, professional indemnity and management liability.

It extends the relationship between XL and Cobalt. The insurer already provides the MGA with sharia-compliant capacity for property and constructions risks.

XL head of international financial lines Louise Dennerståhl said: “We saw real synergies and opportunities to innovate here. Financial institutions, for example, often have property assets or are investing in property, and we have the appetite and capacity to provide these clients with a market-leading range of products covering their professional liabilities. 

“Additionally, we anticipate strong interest from design professionals tendering and working on many of the huge infrastructure projects underway across the Middle East. For these companies, buying their insurance in this manner could be a real differentiator in what is a highly competitive marketplace.”

Cobalt Underwriting chief executive Richard Bishop added: “The potential market is significant. The projected value of the global Islamic finance services industry is expected to be $4 trillion [£2.3 trillion] by 2020, with the total value of Islamic assets expected to grow from an estimated value of $1.8 trillion in 2013 to in excess of $6.5 trillion by that time.”