Extending takaful to non-muslims

Middle East

The market for Islamic insurance could be worth $14bn by 2015. This is five times what the market is currently worth, according to Ajmal Batty, the global head of HSBC’s Amanah Islamic finance unit. Mr Batty formerly head up the life reinsurance division of Arig. Mr Batty was speaking at the World Takaful Conference in Dubai. He said that although Islamic insurance or takaful was currently aimed at Muslims, there was the possibility that in the future it could be marketed as an ethical and fair system to non-muslims. Takaful is a mutual, non-profit making form of insurance that does not allow its funds to be invested in interest bearing instruments. The global takaful industry is estimated to comprise 79 companies operating in 23 countries.