Islamic insurance: the opportunities and the challenges

More licences are being awarded in key takaful markets such as Malaysia and the Middle East but there are many strategic and operational challenges facing potential providers of insurance and technology services to the market. Catherine Stagg-Macey , senior analyst in the insurance practice of financial services research and advisory firm Celent, outlines the key issues

Conventional insurance involves the elements of uncertainty, gambling and interest, all of which are unacceptable under Islamic law. Muslims around the world have for generations grown up with the mind set that insurance is forbidden because it contravenes some of the Islamic doctrines.