A growing number of faith-based organisations have been providing protection based on alternative models and have been the answer to conventional insurance in many communities.

These arrangements normally are in-line with ethical views or belief rulings and they offer products that are meant to meet the specific needs of communities that live by certain ways of life and carry out practises according to their beliefs. Another appeal to these offerings is the value for money for customers, being people-based organisations.

Some of the factors that set these organisations apart are:

• The views on money matters and the institutional objectives pursued are ethically / religiously oriented
• Integrity throughout all the activities of the organisation
• Focus on people
• Restrictions on investments on corporations with harmful practises or products or that go against the principles of the religion
• Investing and support to ethical campaigns
• Benefits aimed at the particular needs of faith- practicants, such as scholarships for Christian institution
• Community support activities

There are of course differing structures, eligibility limitations and characteristics on the various models. The vast majority of faith based insurance is either Islamic (Takaful) or Christian (mainly Catholic). Faith based insurance can be broadly categorised as:

• Christian Health Sharing arrangements
• Christian Associations
• Christian Mutual Insurers
• Takaful
• Jewish Insurance

Source: Hassan Scott Odierno, Actuarial Partners