Four years ago, the Emerald Group Publishing Limited sanctioned a research paper on the demand and supply of Islamic insurance (takaful) in the UK. Leading the research project was Tahani Coolen-Maturi of the Durham University Business School in the UK. The findings which were published in the International Journal of Islamic and Middle Eastern Finance and Management concluded that many people within Muslim communities in the UK who participated in the survey had little or no idea about takaful (Islamic insurance). The findings showed that many research participants were keen on accessing takaful products only if they were sold by the conventional financial institutions and not from specialized institutions dealing solely in takaful products.
A huge chunk of the respondents favored assigning Arabic names for the Islamic insurance products for distinction purposes so as to attract many Muslims. The findings encouraged Conventional financial institutions in the UK to come up with Islamic insurance products aimed at the ever increasing Muslim population in the kingdom. The suggestion mirrored what Standard & Chattered Bank did in Arab and Muslim countries with its Islamic themed ‘Saadiq’ banking products for Muslims.
NDI Takaful & Retakaful Ltd
One company that took the findings of the study seriously was NDI Insurance & Reinsurance Brokers. NDI is a major player in the global insurance market with offices and bases of operations spread around the world handling huge businesses in the areas of Oil and Energy, Surety & Guarantee Business and Marine Hull insurance. A year after the findings were published in the International Journal of Islamic and Middle Eastern Finance and Management, the company was the first major mainstream financial institution to launch an Islamic insurance division called NDI Takaful & Retakaful Ltd.
Since its launch in late 2015, NDI Takaful & Retakaful Ltd. is increasingly positioning itself as a global leader in Islamic risk protection by exploiting its links with takaful markets across the world leveraging on their high premium and price-competitive Sharia complaint products. In marketing itself, the takaful division presents its products as having similarities with conventional insurance however with emphasis on Sharia compliance as its distinguishing factor.
NDI Takaful & Retakaful Ltd is a success story today thanks to the foresight of the big suits in NDI Insurance and Reinsurance Brokers.
Written by Mamudou Jallow