Thursday, July 31, 2008

Takaful opportunities in EU

The large Muslim populations within EU countries – 20 million spread over 27 countries - make takaful business an attractive opportunity, writes PricewaterhouseCoopers UK’s Mohammed Amin and Mohammad Kahn in Middle East Insurance Review (Feb 2008) issue, posted on the former’s blog.
The authors noted that the current accounting and regulatory regimes in the region do not preclude takaful businesses from setting up and marketing to consumers. Indeed this is starting to occur. However, they cautioned companies evaluating this option will need to consider how to keep their operations Shariah-compliant, while also complying with local accounting and solvency regulations.
Takaful allows Muslims to access methods of minimising financial risk that were not open to them through conventional insurance.