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The Actuary The magazine of the Institute & Faculty of Actuaries

First Sharia-compliant insurer ready for business

Principle Insurance, the first independent Sharia-compliant insurer in the UK, has received approval from the FSA. Trading as Salaam Halal, Principle will provide halal home and motor cover and hopes to meet the needs of the UK’s two million Muslims.

Sharia law requires the risk to be spread between all policyholders rather than being transferred from the driver to the insurer. Rather like a mutual insurer, policyholders pay their “premiums” into a fund and share any surpluses. Their payments are invested by Principle in businesses whose practices are in line with Islamic Law.