Islamic home insurance to see increase

Islamic home insurance, known as takaful, could see a global boom in the next three to five years, according to the managing director of a cover provider.

Reuters has reported that Ahmed al-Janahi of alternative home insurance provider Noor Takaful predicts the market will grow by 30 to 40 per cent annually, even in western culture, reaching as much as £11 billion by 2015.

Members of the Islamic home insurance method pool funds to provide money for those who suffer losses normally claimed for with conventional cover and profits are distributed evenly among members.

Sheikh Abdul-Aziz bin Naif al-Orayer, chairman of home insurance firm t'azur, said: We have seen the likes of AIG and others burning so many people, so even in the west, people are looking at takaful on ethical and not just religious grounds.

The Association of British Insurers recently revealed that the amount of fraudulent claims being made with conventional home insurance providers last year increased by 17 per cent since 2007.