Diversification of Islamic Financial Insturments
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Figure 25. UK Sovereign Sukuk Structure
Source: Created by Author
3.10.4 TAKAFUL (ISLAMIC INSURANCE) IN UK
The Takaful industry is the youngest components of the Islamic financial services. While the
industry is growing at a rapid pace worldwide, with estimates by Ernst and Young suggesting a
size of nearly $20 billion by the end of 2017, the United Kingdom market has seen mixed
results. Unfortunately, not much data is available on the Takaful industry in the United
Kingdom. Despite the global development of Takaful industry, in UK, full-fledged retail Takaful
companies as per our information are only two; Muslim Insurance Services (MIS) and Salaam
Halal Insurance. MIS provides several Islamic insurance products ranging from personal
insurance products to commercial insurance products. As personal products, they provide
home insurance and travel insurance with different options to suit Muslim needs, e.g. single
trip insurance, annual multi trip insurance, family travel insurance, pre-existing medical
insurance, business travel insurance and Hajj/Umrah travel insurance. In addition, they also
provide a package of products for commercial needs, such as business insurance, professional
indemnity insurance, landlord insurance, mosque insurance and charity insurance. The last
two are unique which aim to insure and protect the religious and charity buildings in the UK,
including asset and liability cover. Prior to these companies, Principle Insurance Holdings
Limited had ventured into Takaful in UK car insurance trading as ``Salaam Halal'' since July
2008. However, their business model did not pan out and they stopped taking in more clientele
on Takaful side.
Over the last two years’ efforts have been made to expand the Takaful industry in UK, with the
establishment of the Islamic Insurance Association of London (IIAL) in 2015. Their members
currently include Lloyd’s, the Chartered Insurance Institute (CII), the London Market Group