Consumer Preferences for Takaful and Conventional Insurance: A UK-Saudi Arabia Comparison: A UK-Saudi Arabia Comparison

Aysha Alsalih, Christopher Napier

Research output: Working paper


Purpose: This paper examines differences between UK and Saudi Muslims who hold insurance policies, with a particular focus on their awareness and perceptions of Takaful and conventional insurance policies and their choice of policies.

Methodology/Approach: . The overall research approach involves a comparison of two countries, to identify important national differences. A structured questionnaire based on customer-oriented questions has been used in this study, to investigate factors influencing customers’ choice between the Takaful and conventional insurance models and between the various products offered within each model. Differences in responses between the UK and Saudi Arabia are examined in the paper

Findings: Respondents tended to be more aware of general Takaful products (such as household and motor insurance) than family Takaful products (such as life insurance and savings vehicles). Compliance with Shari’ah is more highly valued in Saudi Arabia than among UK respondents. Respondents in Saudi Arabia tend to differentiate Takaful from conventional insurance more than UK respondents, but paradoxically UK respondents report a greater uptake of Takaful than Saudi respondents.

Research limitations/implications: The questionnaire was administered by e-mail, which reduces the ability to obtain a representative sample.

Practical implications: The paper identifies a demand for Takaful products from Muslims in the UK that is at present having to be provided by overseas companies, hence suggesting a gap in the market.

Originality/value of paper: This is the first study of consumer attitudes to Takaful in the UK, and the first to make use of a transnational comparison.

Keywords: Islamic finance; insurance; Takaful insurance; conventional insurance; UK and Saudi Muslims insurance holders; customers’ choice.

Paper classification: Research paper.
Original languageEnglish
PublisherInternational Journal of Excellence in Islamic Banking and Finance
Number of pages21
ISBN (Electronic)2220-8291
Publication statusPublished - 2012


  • Islamic finance
  • Insurance
  • Takaful
  • consumer choice

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