Yahsat secures first-ever Shariah compliant space insurance
Al Yah Satellite Communications Company PrJsc (Yahsat) has successfully secured the first ever Shariah compliant space insurance policy. The insurance solution, which was specifically developed to meet Yahsat’s needs, covers the launch and in-orbit operations of Y1A and Y1B, the Yahsat satellites scheduled to be launched in 2011.
Methaq Takaful Insurance Company and ElseCo Company, both companies based in the UAE, provided the insurance coverage. Willis Inspace, the specialized space division of the London based insurance broker Willis Limited, designed the takaful insurance coverage.
The uniquely crafted insurance solution was a seamless fit with the innovative technology, deep regional insights and fresh approach that Yahsat will bring to the markets and the customers that it will serve.
“Insurance protection is an integral part of our satellite program. With firm roots in the region, we are proud to be the first organization to use a new Shariah-compliant insurance solution for space programs. This augurs well in the development of the Takaful insurance market as well as make available an alternative market for space insurance products.,” said Jassem Mohamed Al Zaabi, CEO, Yahsat. “Going forward, we are open to working with insurance providers in developing innovative and customised solutions to serve our needs.”
“Methaq Takaful has worked very closely with its Sharia Supervisory Board and its Chairman to develop a first of its kind Shariah-compliant space policy for the Yahsat project. This policy reflects Methaq’s keenness as well as its capability and expertise to think innovatively to provide specialised takaful solutions to its customers. It is also a testimony to the will and desire of Yahsat to encourage local Islamic financial institutions to provide such specialized insurance solutions,” commented Mr. Abdullah Al Maamarri, Managing Director of Methaq Takaful Insurance Co.
“We are proud to have designed and placed this unique insurance solution for the benefit of Yahsat, after a thorough analysis of their needs. Willis Inspace continues to demonstrate its capability to provide uniquely customized risk management solutions and its ability to drive the best out of all insurance providers in the world.” said Philippe Montpert, Managing Director of Willis Inspace.
Pierre-Eric Lys, Chairman of Elseco Limited commented: “This sophisticated insurance contract is innovative in many respect. It is the result of a long process involving several companies with very different background and expertise. We have managed to fulfil the requirement of our client. We are convinced that this contract will allow Yahsat to enhance its risk management and finance structure in many ways. Several other satellite operators and manufacturers have already expressed their interest for similar insurance products”.