Takaful motor and home products set to be launched before the summer
The Capita Group has been selected by British Islamic Insurance Holdings (BIIH) as the sole provider of outsourced services for a range of Takaful insurance policies due to be launched in the UK. Capita will provide a full, end-to-end front and back office function – from selling and administering new policies to managing the claims process, outsourced customer relations and IT services.
The agreement is worth £87m over the next eight years based on projected product volumes.
BIIH expect to launch motor and home insurance products before the summer with small business insurance, life insurance, investments, savings and ‘green’ or ethical financial products set to follow. The contract will be run from Capita’s existing office in Cheadle, which will handle customer sales, servicing and claims management.
Paul Pindar, chief executive of The Capita Group said: “Capita is delighted to be entering this partnership with BIIH, with whom we have been working to design and build a products infrastructure for over a year. We believe the deal will provide significant value to both organisations. Our extensive experience in insurance and other financial services outsourcing will underpin the competitiveness of BIIH in the UK for both insurance and, later, other financial products.”
BIIH chief executive, Bradley Brandon-Cross said: “The Muslim faith states that, because of various product features, conventional UK insurance options are in conflict with Islam and this creates a dilemma for British Muslims. We are planning to create a British insurer that operates in a way that removes this dilemma and creates an exciting new sector in the British insurance market.”
