Islamic Insurance (Takaful): Demand and Supply in the UK

Takaful is the Shariah compliant alternative to conventional insurance. Unlike conventional insurance, takaful insurance avoids prohibited concepts according to Islamic law, such as interest (Riba), gambling (Maysir) and uncertainty (Gharar). While there is a rapid growth in the takaful industry worldwide, it is in its early stages in the UK. In the UK there are only two takaful providers, one of which is struggling to raise capital and remain in business. In this paper the main objective is to examine empirically whether there is a real demand for takaful products among Muslims in the UK. This may involve other aspects such as targeting different segments of the Muslim population (e.g. overseas students in the UK) or effectivly promoting strategies.