Skip to main content

Research Repository

Advanced Search

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

Coolen-Maturi, T.

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


Authors



Abstract

Purpose: – This paper aims to examine empirically whether there is a real demand for takaful products among Muslims in the UK, and to assess the awareness about takaful insurance and its main principles among UK Muslim communities. Design/methodology/approach: – The paper uses empirical data collected via an online questionnaire. Findings: – The study shows that the survey respondents are likely to buy car, health, home and home contents insurance if the same cover is offered as conventional insurance and if prices are competitive. The paper also shows that there is quite a lack of awareness about takaful insurance and its main principles among UK Muslim communities, and that most respondents are only aware of the riba and maysir concepts. It also showed that about half the respondents are not sure whether takaful insurance is in accordance with Islam. The majority of the respondents prefer to get takaful products via banking channels rather than from independent takaful institutions. Not surprisingly, the majority of respondents agreed to the use of Arabic terms for the Islamic insurance to show that these are Islamic products and to differentiate them from conventional alternatives in order to attract more Muslim participants. Practical implications: – This findings presented in this paper would encourage more banks in the UK to develop takaful products to target the rapid increase in Muslim populations in the UK and increase the demand for Islamic insurance products. Some promotion strategies may be needed to increase the customers' awareness of the existing takaful products and, more importantly, to their compliance to the Shariah law. Despite the fact that there is an obvious preference among the survey participants towards using Arabic terms in takaful products, one could argue for the financial benefits of introducing these Islamic insurance products to non‐Muslim customers where Arabic terms are avoided but with the explanations of the main concept of takaful products. Originality/value: – The paper examines empirically (via an online questionnaire) whether there is a real demand for takaful products among Muslims in the UK.

Journal Article Type Article
Acceptance Date Nov 30, 2013
Publication Date Jan 1, 2013
Deposit Date Jul 12, 2016
Publicly Available Date Jul 21, 2016
Journal International Journal of Islamic and Middle Eastern Finance and Management
Print ISSN 1753-8394
Publisher Emerald
Peer Reviewed Peer Reviewed
Volume 6
Issue 2
Pages 87-104
DOI https://doi.org/10.1108/17538391311329806
Public URL https://durham-repository.worktribe.com/output/1379641

Files

Accepted Journal Article (381 Kb)
PDF

Copyright Statement
This article is © Emerald Group Publishing and permission has been granted for this version to appear here http://dx.doi.org/10.1108/17538391311329806. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited






You might also like



Downloadable Citations