Reimagining Risk and Solidarity Why France Needs Takaful Now

Ezzedine GHLAMALLAH
Takaful entrepreneur, cofounder of SAAFI

25th August 2025
Published by World-Of-Takaful

As the world’s fifth-largest insurance market and the European country with the largest Muslim population, France has yet to develop a genuine Takaful offering. This paradox reveals both a lag and a tremendous opportunity: to meet concrete and growing needs, and to elevate France to the rank of European leader in this ethical and socially responsible sector.

This dynamic is already reflected in the halal market, estimated at more than €5.5 billion—a clear sign of consumer demand for products that comply with Islamic values. In a country where insurance represents nearly $283 billion in premiums and where the penetration rate is close to ten percent, the equation is clear: if Takaful captured only 2% of this market, France would become the second-largest market in the world behind Saudi Arabia.

Despite this huge potential, Takaful remains in its infancy. No general products—car, home, or professional insurance—currently exist. The only active solution is Sakina Funérailles, which covers funeral costs and repatriation abroad. Historic life insurance contracts, such as Salam from Swiss Life, Amâne from Vitis, and Ethra’a from FWU, have disappeared from the landscape, leaving room for a few more discreet Luxembourg-based insurers.

Islamic financing solutions, such as the real estate Murabaha offered by Chaabi Bank, do not come with Sharia-compliant loan insurance—limiting their adoption and weakening the ecosystem.

How can this delay be explained? Since 2008, there has been no political will to continue the momentum created by Christine Lagarde. The principle of secularism is often cited as an obstacle, even though private law allows contracts that reflect religious preferences to be drawn up. This ambiguity is compounded by a lack of investors willing to commit and insufficient communication. Many Muslims in France are unfamiliar with the difference between conventional insurance and Takaful, and remain effectively excluded from suitable offerings.

However, the demand is real. Funeral and repatriation insurance remains a priority for many families, particularly in Comorian and Maghreb communities.

Mutual health insurance, now compulsory for all private-sector employees, should be available in a Takaful version. Muslim artisans, traders, and entrepreneurs want professional insurance coverage that respects their values. Islamic loan insurance is essential to support mortgage financing already available on the market. Mosques still struggle to find conventional insurers.

Takaful in France is not a niche market—it is an economic and social promise. It could generate several billion euros in contributions, strengthen the attractiveness of Paris as a financial centre, and attract capital from the Gulf, as London and Luxembourg have already done.

France also has a pool of skills ready to be mobilized: Financia Business School already trains experts in Islamic finance. Moreover, Takaful embodies a useful form of finance—based on solidarity and mutualization—in line with the expectations of a society that aspires to more responsible models.

To turn this potential into reality, competitive and accessible products will need to be designed, distributed through modern and digital channels, communicated widely to raise public awareness, and investment made in solutions tailored to the specific needs of the French population.

France is at a crossroads. It can continue to ignore this market and allow other European capitals to take the lead—or it can seize this opportunity to become a major player in Takaful. The economic benefits are considerable, the social advantages are obvious, and demand already exists.