Sharia insurance firm signs £87m Capita deal

A British Islamic insurance company is outsourcing its IT to Capita in an £87m deal.

The eight-year deal will see Capita working with British Islamic Insurance Holdings (BIIH), which provides insurance compatible with the Muslim faith.

It reflects a European shift towards Islamic-compliant financial services, which is seeing western banks offering services compliant with Islam's Sharia law.

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Capita will provide front and back office services and an IT platform from which to launch and sell BIIH Takaful insurance products.

The contract will be run from Capita's existing office in Cheadle, which will handle customer sales, servicing and claims management.

BIIH CEO Bradley Brandon-Cross said in a statement: "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."