New York-based AIG is looking to tap in to the $4 billion Shariah-compliant insurance, or takaful, market in Malaysia.
AIG formed a joint venture with Alliance Bank Malaysia Bhd in January, four months after winning a licence from Malaysia’s central bank.
There are 10 Shariah-compliant insurance companies in Malaysia, with US-taxpayer owned AIG owning two, one that operates internationally, and the joint venture AIA AFG Takaful. AIG plans to be among the top three takaful operators in Malaysia by the end of 2013.
Takaful is based on the Shariah principle of mutual assistance, where two parties agree to pay into a fund that will be used to assist each other in times of need.