UK Islamic insurer launches as Salaam Halal
Britain’s first dedicated Muslim insurance group, Principle Insurance Company Ltd has officially launched offering motor cover and trading as Salaam Halal.
The insurer aims to take advantage of Britain’s two million Muslim population with policies that comply with Shariah law.
Formerly known as BIIH (British Islamic Insurance Holdings), Principle is headed by CEO Bradley Brandon-Cross with £60mn+ in capital from Gulf and Asia-based institutional and private investors.
Insurance policies that comply with Shariah law are known as Takaful.
Takaful insurance allows participants to pay their contribution into a pool or Takaful Fund. The pooled contributions are invested strictly in Shariah-compliant investments (i.e not in interest bearing investments or investments linked to prohibited goods and activities such as alcohol or pork) and any investment profits are distributed back to the Takaful Fund.
The fund is used to pay claims, and at the end of the year, if the Takaful Fund is over-funded it is then distributed back to policyholders as a participation discount on their next year’s premium. This will be in addition to any conventional no claims bonus.
It is thought that the cover may appeal to non-Muslims interested in ethical and cooperative-style financial products.