Translations Best practice in French version Best practice in English version

ZURICH FINANCIAL SERVICES launches a life insurance activity compliant with Islamic principles

6. Clients and consumers



Islamic finance, in agreement with the ethics of Islam, is based on two principles: the prohibition of interest, also known as usury, and the responsibility for the investment. It offers investors an ethical and socially responsible alternative, excluding sectors such as alcohol, armament, etc..… With global liabilities estimated at over 700 billion in 2007, it is full of attractive growth prospects.

The Swiss group Zurich Financial Services (ZFS), one of the world leaders in life insurance, finds in it a growth relay that is part of its global strategy. In this context, it decided to implement a life insurance product compliant with Islamic principles: "Family Takaful" based on risk pooling.


  •  Providing a "Range of Family Takaful" life insurance products meeting the specific needs of customers, Muslim believers or customers in search of ethical products.
  •  Strengthening the group's presence in the Middle East and North Africa


The United Arab Emirates (UAE) represents the first insurance market of the Gulf region with 3.46 billion in premiums in 2007 including 530 million in life insurance. Experts predict that this number will double by 2011.

To penetrate this market, the ZFS creates a subsidiary through a joint venture with the Abu Dhabi National Takaful PSC company, the first insurance company in the UAE. The subsidiary, named Zurich Takaful Company Limited is based in DIFC, the international financial center of Dubai. It is 51% owned by the Swiss group and 49% owned by the Arab company. In accordance with the principles of Islamic finance, the activities of the subsidiary are overseen by a Sharia Board: a control commission in charge of evaluating the compliance of products and comprised of Muslim experts having dual know-how (in economics and Islam).

It is Zurich Takaful which develops the "Family Takaful" line, a traditional life insurance that meets the Sharia principles.

It targets businesses offering coverage to their employees in case of death or partial or total disability, whether the loss is accidental or natural.

Premiums collected from policyholders are considered as donations and constitute the reimbursement fund of the company in case of disaster.

At the end of each fiscal year, the cash surplus is redistributed to policyholders.


  •  Constitution of the reimbursement fund via the premiums paid


  •  Mutual sharing of risk between the insured and the insurance company: redistribution of excess cash at year end.

Mise à jour le 26/05/2016

Creative Commons Attribution This work by Réseau Alliances – World Forum Lille is licensed under a Creative Commons Attribution-Non Commercial-NoDerivs 3.0 Unported License.