The Times Supplement, 27th November 2008

“…Takaful gives the same level of protection as conventional insurance but operates in a different way. The word itself in Arabic means “guaranteeing each other” and theoretically the participants contribute to a pool which is invested in strictly Shariah-compliant investments. Any investment profits are then given to members of the pool once all claims have been satisfied. As Bradley Brandon-Cross, Chief Executive of Salaam, puts it: “The objective of Takaful is to pay a defined loss from a defined fund. The fund is used to pay claims, and at the end of the year, if the Takaful fund is overfunded, it is then distributed back to the policyholders as a participation discount on their next year’s premium in addition to an no-claim bonus.”…So far, says Brandon-Cross, the company has been fielding a lot of enquiries and picking up business at about the standard industry rate through telephone services. But that could accelerate once the product becomes better know and when conventional policyholders engage with a re-branded product aimed at non-Muslims but offering a return on what otherwise may be appear to be a wasted “investment” if no claims are made.

“We have always believed that certain elements of the product – its focus on ethical investments, transparency and the ability to get something back – would appeal beyond the Muslim community, “ says Brandon-Cross.”

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