IslamicFinance.de

Speaking at a conference about UK’s general insurance in London, Max Taylor, chairman of the Islamic Insurance Association of London, said that the success of the takaful model relied on the participation of policy holders as the actions of one have an affect on all policy holders. There have been many attempts to establish takaful insurance operations in the UK in the past, but he said projects failed because of issues with capitalisation, underwriting approaches, and investment strategies under Shariah principles. He added that, internationally, takaful models had been successful in personal lines, but the vast majority of operators of such models were “small” and “risk averse”.