Insurance providers 'must meet demand for sharia compliant insurance'

There is a constantly growing demand for insurance that is compliant with sharia law, it has been claimed.

According to a spokesperson for HSBC Amanah, the global banking division of HSBC Group, there is a real need for insurance providers to meet this increasing demand.

"The market is currently quite limited with its insurance offerings with none of the main banks or insurers offering life or health products as yet," he claimed.

The spokesman stated that sharia compliant insurance is "far more complex" as health and life insurers generally cannot control whether parent company investments lie in sharia compliant industries.

Product development therefore takes longer as independent scholars must consult with providers to ensure Islamic legal guidelines are met, he explained.

Last November, the Islamic finance industry was estimated to be worth around £250 billion globally, according to research by the Financial Services Authority.