Cobalt
Underwriting
Shariah Compliant Solutions
A-Rated ethical insurance products, advisory and training services since 2012
A unique proposition
Cobalt utilises the strengths of the London Subscription Market model to provide broad capacity for complex risk and a depth of knowledge and expertise that only a unique market such as London has to offer.
We are working closely with both global insurance carriers and Lloyd’s of London to develop solutions to some of the globe’s most challenging risks and work closely with the international broking community, to market and promote our underwriting capability, and build Shariah-compliant business relationships with companies throughout the Muslim world.
Cobalt Underwriting
Sharia Compliant SolutionsA-Rated ethical insurance products, advisory and training services since 2012
Find out MoreA unique proposition
Cobalt utilises the strengths of the London Subscription Market model to provide broad capacity for complex risk and a depth of knowledge and expertise that only a unique market such as London has to offer.
We are working closely with both global insurance carriers and Lloyd’s of London to develop solutions to some of the globe’s most challenging risks and work closely with the international broking community, to market and promote our underwriting capability, and build Shariah-compliant business relationships with companies throughout the Muslim world.
ESG Compliant
The Environmental, Social, and Governance (ESG) concept is soundly embedded within Cobalt’s objectives, mission and values. Cobalt is committed in playing its part in addressing the challenges of climate change. Cobalt strongly believe in ‘giving back to the community’ and will explores options in distributing its Surplus (Underwriting Profit) to charitable organisations that help the most vulnerable and needy or protect the environment. Cobalt have adopted a robust governance framework in that they are supervised by an external Supervisory Board to ensure that fundamental principles such as transparency with stakeholders, contract certainty with policyholders, fairness and justice are strictly implemented.
Higher Objectives
Indeed, the Higher Objectives (Maqasid) of Cobalt’s Shariah principles is to achieve happiness and promotes the well-being of mankind through the protection of life, property and wealth.
Risk Selection
No two risks are the same. Therefore, Cobalt apply a strict criteria in risk selection and carefully analyse each risk to ensure the removal of those risks that do not conform to Cobalt’s principles. For example, Cobalt do not accept risks that are involved in the Tobacco industry as it is extremely harmful to humans and the environment.
Participation
One of Cobalt’s core principles is the involvement of its Participants (Policyholders) and as result the Participants are kept involved in the distribution of the of the Surplus (Underwriting Profit).
Investment
Cobalt’s investment strategy is in harmony with ESG factors and criteria. Cobalt will not invest its funds in assets or services that is deemed to be detrimental to human life and the environment.
Shariah Principles
The essence of Shariah-compliant insurance is that it must:
- Avoid usury (no investment interest from premium funds)
- Involve the policyholder in the outcome of the underwriting
- Ensure that all monies are protected from contamination by non-Shariah funds
- Place investments exclusively in Shariah-compliant investment products
Shariah Standards
We have a full-time in-house Shariah scholar, Sheikh Zubair Miah, and a Shariah Board chaired by Sheikh Nizam Yaquby. By building Shariah expertise in London, Cobalt is providing common standards, consistency of Shariah interpretation and a robust platform for collecting premiums and paying claims.
Risk - Shariah in Nature
For Cobalt to provide cover, it is the risk exposure itself that must be Shariah-compliant, not the entity requesting cover.
There are a wide and varied assets owned or invested in by those who would like to protect their interests utilising the ethical alternative to conventional insurance that Shariah-compliant insurance provides.
Cobalt will consider risks from many sources so long as the exposure itself is not forbidden.
Those risks for which we cannot consider providing cover are:
- conventional financial services featuring interest, speculation and gambling
- certain food and beverage industries
- tobacco industry and illegal drugs
- gambling
- production of armaments
- sectors within adult entertainment industry
However, not all risk exposures can be ruled totally forbidden. Where a risk exposure includes some aspect of non-Shariah activity, so long as this can be measured and deemed in minority, then it is possible for Cobalt to provide a Shariah-compliant insurance contract.
Examples of this are multi-tenure buildings, buildings such as hotels that have some sales of alcohol or manufacturing processes where a forbidden product is created as a by-product.
Having our in-house Scholar allows us to identify and rule on these exposures as part of our underwriting processes.
Our Shariah Compliant model
- Our Insurers operate via a Takaful Window and deliver products utilising the Hybrid Wakala-Mudarabah Model, with the Wakala contract being used for the provision of underwriting services while the Mudarabah contract is adopted for returns made from investment and underwriting performance activities.
- With regard to underwriting services, the insurer act as the Wakeel (agent) on behalf of participants, in return for a Wakala fee, and provides such functions as providing policy pricing and administration, the accounting of monies, the adjustment and paying of claims, provision of actuarial services, arranging Retakaful and all other necessary functions.
- As well as receiving recompense for its direct services, the insurer is incentivised to maintain a balanced profitable underwriting stance that ensures the highest probability of the participants funds remaining in surplus. This is achieved by the participants agreeing to share with the insurer, on a predetermined basis, the profits made from prudent investment of the funds and the profits made through prudent underwriting and claims management .
- A pre-condition to the entire arrangement is that the Insurer delegates the operations of the Takaful Window to Cobalt Underwriting, and independent General Managing Agent (MGA) to deliver the services that strictly conform with the principles of Shariah, such as segregation of funds, transparency, purity, and avoidance of Shariah prohibited activities and services.
Shariah Compliant
Our Services
The Cobalt Group was started in 2012, backed by Capita, a FTSE100 company, and the Bank of London and the Middle East (BLME) and is formed of two operations:
Cobalt Advisory
Providing Shariah audit, training and certification
Cobalt Insurance Holdings
Cobalt Insurance Holdings is the umbrella company for Cobalt Underwriting and Cobalt Advisory Services. Our capacity is provided by a number of established insurers, all with an S&P rating of at least A or above
Company Directors
Max Taylor
Chairman of Cobalt Insurance Holdings Limited
Max began his career with Willis Faber and Dumas in 1970, and has more than 40 years of industry experience covering both broking and underwriting organisations. He is a previous Chairman of Lloyd’s of London and Deputy Chairman of Aon Corporation’s UK operations and Chairman of BIBA (British Insurance Brokers Association). Apart from Cobalt Insurance Holdings Chairman, he is also Chairman of Islamic Insurance Association of London.
John Williams
Director of Cobalt Insurance Holdings Limited & Cobalt Underwriting Services Limited
Mr. Williams has over thirty years of worldwide insurance and reinsurance industry experience. Mr. Williams co-founded Trebuchet Group Holdings Limited (formerly Armour Group Holdings and Brevan Howard P&C Partners Limited), in 2007 and is the President. He was co-founder and President of Castlewood Limited, a leading provider of run-off products for the insurance industry which he started in 1993.Mr. Williams started his insurance career in the London market before moving to Bermuda in 1981 and served as a the Underwriter and chief operating officer of one of Bermuda’s largest independent reinsurers Mr. Williams currently serves on the Insurance Advisory Committee appointed by the Minister of Finance and previously served as the Chairman of the Bermuda Independent Underwriters Association and was a member of the Insurance Admissions Committee which is appointed by the Bermuda Minister of Finance.
Contact Us
Cobalt Underwriting Services
1st Floor, 63 St Mary Axe
London EC3A 8AA
enquiry@cobaltuw.com
020 3642 0200 (Main)
Cobalt Underwriting Services
Cobalt Underwriting Services Limited (“CUSL”) is a company incorporated in England, Company Number 07979365, and authorised by the Financial Conduct Authority (FRN 605713) under Part IV permission to undertake a range of regulated activities.
CUSL operates as a fully Shariah-compliant Underwriting Agency (or Managing General Agent) based in the City of London focusing on the provision of Shariah-compliant insurance and reinsurance products and services.