Saudi-Japanese JV launches "Family Takaful" in Saudi Arabia

AEIC (The Arab-Eastern Insurance Co., Ltd. E.C.), a composite insurance company registered in Bahrain whose operating office in Jeddah, recently announced its launch of Family Takaful. The objective is to create a pool of funds which will support, stabilize and improve the life of each participant and his/her family members and thus allow them to enjoy the comfort of being a member of a larger virtual caring family.

AEIC is a joint venture among prominent Saudi businessmen, Sheikh Ghassan Ibrahim Shaker, Sheikh Yousef Abdul Latif Jameel and The Tokio Marine & Fire Insurance Co., Ltd.. Tokio Marine, the most well secured Japanese insurance giant, has been operating for more than 120 years and has a world-wide network.

Dr Mohammed Ali Elgari, a prominent and prestigious Shari'ah scholar has accepted to be the Chairman of AEIC's Shari'ah Board, and accordingly he will be examining and advising the company on its operations and products.

Mr Atsuhiko Ayabe, Executive Director of Hussein Aoueini & Co., Ltd. (the local agent for AEIC), who is also a member of IIBI, is the key personnel of the company's Family Takaful initiative. Mr Kamsani Tati, a Senior Manager of GE Frankona Reassurance Ltd., who is based in Singapore has been supporting AEIC in developing the technical aspects of this Takaful project. Mr Tati has vast knowledge and experience in the Family Takaful business and is a leading personality in the industry, especially in the Southeast Asian region.

According to the company's senior management, their current focus is to promote Group Term Takaful as it provides wider market-reach through employers via the Employee Benefit Programme and through the banks via Credit Cover for Islamic loan borrowers. The company is also currently developing a variety of Individual Family Takaful products such as Children's Education Takaful Plan and Family Income Takaful Plan, which they intend to distribute through major local banks in Saudi Arabia.

Based on the initial response to these Islamically aligned products that AEIC have launched, we feel that this company has great potential as these products allow the participants to enjoy the comfort of being a member of a larger virtual caring family.