Takaful

What is takaful?

Takaful is a type of general insurance which complies with Islamic Shariah law.

Takaful exists because contemporary western insurance products are considered "unIslamic" in many Muslim countries and are perceived to contravene Islamic principles. It is considered gambling to lose an insurance premium to an insurance company if the insured event does not take place (and gambling is prohibited by Islam). Takaful complies with Islamic Shariah (which outlines the principles of compensation and shared responsibilities among the community) and has been approved by Muslim scholars.

The takaful market opportunity

The takaful industry is still not past its formative years and there are many opportunities to develop a product offering for this niche insurance market. There are estimated to be 1.6bn Muslims in the world but penetration of this audience is estimated to be "less than 5% for most Muslim countries". Source: Dato' Mohd Fadzli Yusof, Chief Executive Officer, Sharikat Takaful, Malaysia

The takaful sector is growing rapidly in both established markets and is now spreading into new theatres: “Malaysian takaful is growing at 60% pa and the Middle East at an average of 10%” Source: Mohammad Ajmal Bhatty, Chief Executive, Takaful International, Bahrain. However, for all the potential that this market offers it is still a highly specialized, and complex, niche for which detailed preparation will be needed, especially concerning product support systems that can accomodate Islamic Shariah requirements.

The UniRisX Solution

Existing takaful providers have been unable to benefit from a complete integrated system that will support their takaful operations. Current providers are “making do” with compromise systems. UniRisX can provide the needed systems support to takaful operators that will help them deliver a wider range of Shariah compliant products. The UniRisX takaful solution operates to the Mudarabah Surplus Sharing Model between non-claimants and the operator.

Beyond the core markets of Asia and the Middle East a takaful industry is emerging which incorporates a receptive audience, growing market value and a lack of established suppliers. For financial services and insurance providers who do not currently offer takaful products the market opportunity is clear. UniRisX will make it possible for these organizations to rapidly create, launch and manage a range of Shariah compliant takaful products via any distribution channel and in any language. The rewards await the leading providers who can establish a strong takaful market position in the UK and beyond.

The UniRisX service would substantially reduce the cost and complexity of building a takaful administration process by utilizing “one & done” STP and it will provide full transparency of the takaful process.

Learn more about UniRisX click here or to discuss our takaful solution contact Tony Ferguson at This e-mail address is being protected from spambots. You need JavaScript enabled to view it