The advice from many financial advisors is to build a financial foundation using key insurance products, such as life, income, property, health. One such advisor says that getting involved in additional finance activities such as pensions and ISA’s without this is like building on sand.
I agree with this point. However, conventional insurance products are not allowed and the (2?) halal insurance providers are no longer trading in the UK.
I was wondering what type insurance is offered in Muslim countries? Are there any UK - based companies? What is stopping an insurer from a Muslim country entering the UK market?
Are there any alternatives that can be used to build this foundation instead of insurance?
May Allah bless you.
First of all, some of these insurance are not permissible and I am not aware of any halal alternatives to income and life insurances.
Secondly, I believe that there is no much demands for halal insurance products. Neither there is a strong support from the Muslim community to back these products up.
Hence, Salam car insurance failed in the past. Until not long ago (not sure about now) Al Rayan Bank which was known as the Islamic Bank of Britain, was not making any profits.
Yes, there is also the regulatory issue. But I don’t think there would be a strong lobby from the Muslim community, that would convince the authority to make the amendments needed.
Mohammad Amine has written about this not long ago on his blog: https://www.mohammedamin.com/Islamic_finance/Takaful-retail-UK-absence.html
@ibrahimkhan can also add more to this discussion.