29th Feb 2008 07:01
29 February 2008
CAPITA NAMED PREFERRED OUTSOURCING PARTNER FOR BRITISH ISLAMIC INSURANCE HOLDINGS * Agreement worth circa ‚£87 million over 8 years based upon projected product volumes * Capita to provide front and back office services and an IT platform from which to launch and sell Takaful insurance products
The Capita Group Plc ("Capita") announces that it 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.
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 Plc commented: "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."
Comments BIIH Chief Executive, Bradley Brandon-Cross: "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."
The deal is subject to contract and FSA approval.
-ends-For further information:The Capita Group PlcTel: 020 7799 1525Paul Pindar, Chief ExecutiveShona Nichols, Corporate Communications DirectorMedia enquiries:Caroline MooneyCapita press officeTel: 0207 654 2152 or 0870 2400 488 out of hours
BIIH
Alison Love or Tom LeatherbarrowTel: 0121 713 3500
Notes to editors:
The Capita Group Plc is the UK's leading provider of integrated professional support service solutions. The Group's service capabilities encompass customer services, financial services, human resource services, software services, systems and strategic support and property services delivered to both public sector and private organisations. With over 29,000 employees at more than 300 offices across the UK, Ireland and India, Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2007 of ‚£2,073 million.
Further information on Capita can be found at: http://www.capita.co.uk
BIIH is working towards becoming the UK's first dedicated, Islamic insurance provider. Formed in 2006, it raised initial capital of ‚£19 million from Gulf-based institutional and private investors during the year. Since then, the company has been working intensively to finalise its business plans, gain permission from the FSA and prepare for the launch of the UK's first independent Shariah-compliant insurance business. The long-term vision of the company is to become the Islamic insurance partner of choice and a provider of an ethical insurance alternative on a selective basis. It aims to focus first on the UK and, in due course, enter Europe and high-growth potential GCC countries (e.g. Saudi Arabia, UAE, Qatar).
Takaful is derived from the Arabic word "Kafaala" meaning guaranteeing. Takaful is based on the principles of mutual co-operation and donation, with policyholders or Takaful participants mutually agreeing to make a contribution which creates a fund to compensate any of them in the event of a loss. The group agrees what the fund will cover and in what circumstances it will pay out. By excluding the Haram, or forbidden, elements of conventional insurance (such as the use of interest) the insurance is not in conflict with the Islamic faith. In addition, to ensure that all aspects of the Takaful business are Halal, the insurance provider has a Shariah Supervisory Committee or a Shariah Board. This committee comprises a number of independent Muslim scholars who provide guidance, approval and supervision of the business.
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