Pakistan’s largest private insurance group will offer sharia-compliant insurance products, or takaful, through its general and life units, adding further momentum to government efforts to expand the Islamic finance industry.
Both EFU Life Assurance and EFU General Insurance plan to open takaful windows, a practice which allows firms to offer Islamic and conventional products side by side, according to separate filings with the Karachi stock exchange.
An alternative to conventional insurance, takaful follows religious guidelines including bans on interest and pure monetary speculation and a prohibition on investing in industries such as alcohol and gambling.
