The chairman of the Islamic Insurance Association of London (IIAL), Max Taylor, has claimed that London has the ability and willingness to drive the growth of shariah-compliant insurance products.
Taylor was speaking as he joined the London mayor Boris Johnson, CityUK CEO Chris Cummings and others, to launch the IIAL at the Mansion House.
The association has been formed to create a representative body to support the work of those in the UK reinsurance markets that are transacting Islamic finance.
Insurance and reinsurance has been the last of the financial services sectors in London to establish shariah-compliant operations and products.
With the Islamic nations of Asia the Middle East and North Africa now amongst the world’s biggest economic success stories there is a growing market for the provision of transparent and trusted shariah-compliant insurance and risk products.
The IIAL will provide its membership with a platform to meet, network and have their say on how they wish to shape London as provider of Islamic insurance and risk solutions.
It will provide analysis on the development of the wider Islamic financial market and how insurance will and can play a part in that development.
The aim of the IIAL is to play a major part in the efforts to drive and develop principles for the transaction of Islamic and shariah-compliant commercial reinsurance business, creating a set of principles that can be used as a basis for a future international standard for shariah insurance products and their transactions.
Taylor commented: “[The] launch of the IIAL comes in response to a clear need from the market both in the UK and globally.”
“It comes at a time when the Islamic risk and insurance sector was undergoing a period of rapid growth.”
“However, to enhance the sector and deliver change there is a real need for greater expertise and knowledge and this is where the London market can play a leading role.”
He said the Islamic insurance sector remained one of the most dynamic sectors in the industry and there is a demand for high quality underwriting and capacity, which is ready-made for London to deliver.
Taylor added: “To be in a position make the most of those opportunities London needs to engage with Islamic businesses and markets.”
“The IIAL allows those in the London market to speak with a single voice and our message is that we are serious about the development of the Islamic insurance industry.”
