Switzerland has no takaful law of its own: an Islamic operator would fall under general insurance law and need a FINMA licence, yet no retail takaful insurer has been identified there, even though Swiss groups run such businesses abroad.
FINMA, the single supervisor of insurers
The Swiss Financial Market Supervisory Authority, or FINMA, takes its name from Article 4 of the FINMASA. It supervises insurers under the Insurance Supervision Act of 17 December 2004, which would also apply to any takaful operator.
No rules specific to Islamic insurance
According to the MLL Legal guide updated in August 2021, takaful and retakaful fall under general insurance law in Switzerland. No particular provision deals with the donation fund, wakala or the sharia committee that such operators rely on.
Company or cooperative: the required legal form
A takaful operator established in Switzerland would need a FINMA licence and would have to take the form of a company limited by shares or a cooperative. A member-owned cooperative offers a structure close to pooling among participants.
Foreign insurers: a branch and a deposit with the SNB
A foreign operator covering risks located in Switzerland must open a branch there, obtain a FINMA licence, set up an organisation fund and lodge a deposit with the Swiss National Bank. A Gulf takaful company therefore cannot solicit customers freely.
Retakaful, an activity needing no licence
Pure reinsurance, and therefore retakaful, does not require a FINMA licence according to the MLL Legal guide. This flexibility appeals to Islamic reinsurers; the mechanism is presented on our page on Islamic reinsurance or retakaful.
Zurich Takaful, born in Abu Dhabi in 2008
In 2008, the Zurich group created Zurich Takaful, 51% owned, with Abu Dhabi National Takaful. A major Swiss insurer thus developed its takaful business in the Middle East, see takaful in the Emirates, rather than at home.
Zurich's foothold in Malaysia
In 2016, Zurich acquired MAA Takaful in Malaysia, one of the most structured takaful markets in the world. The deal shows Swiss groups' interest in Islamic insurance where a dedicated framework exists, such as Malaysia's Islamic Financial Services Act of 2013.
Swiss Re and its Kuala Lumpur licence
In 2009, Swiss Re obtained a composite retakaful licence from Bank Negara Malaysia and opened a unit in Kuala Lumpur. The Zurich-based reinsurer thus shares the risks of Asian takaful operators, with no equivalent offer for individuals in Switzerland.
Salam, a policy sold in France rather than Switzerland
The earlier version of our page cited a Swiss Life Islamic savings policy. It actually concerned France, where Swiss Life launched in 2012 what is presented as Europe's first family takaful; see the French market.
A market described as nascent
The MLL Legal guide describes the Swiss takaful market as being at an early stage, and no retail operator has been identified there. No verified data quantifies the Muslim population concerned or the potential size of such a market.
Practical choices for a Muslim policyholder in Switzerland
With no local offer, policyholders can favour an insurance cooperative, examine the investment policy and surplus participation of contracts, then seek a scholar's opinion. Basic health insurance and motor liability cover remain compulsory in any case.
Expatriates and cross-border workers: looking beyond borders
A Swiss resident cannot insure risks located in Switzerland with a foreign insurer lacking an authorised branch. For property or a stay in a country with a takaful framework, however, taking out cover locally remains possible.
Finding compatible insurance in Switzerland
- Check in the FINMA registers that the insurer or intermediary you contact actually holds an authorisation.
- Take out compulsory cover without delay, such as basic health insurance and motor liability.
- Ask insurance cooperatives about their investment policy and how surpluses are redistributed to members.
- Ask whether a product labelled Islamic has a named sharia committee and a written opinion.
- For a risk located abroad, compare the takaful operators licensed in the country concerned.
- Have the chosen policy reviewed by a recognised scholar or sharia committee before committing.
Cost of cover: Swiss policy versus takaful model
| Component | Standard Swiss policy | Takaful logic |
|---|---|---|
| Premium or contribution | Kept by the insurer | Donation to the participants' fund |
| Management costs | Included in the premium | Separate wakala fee |
| Underwriting surplus | Kept or shared depending on company or cooperative form | Returned to participants under the policy clause |
| Investments | Free within FINMA supervision | Limited to sharia-compliant assets |
| Reinsurance | Conventional reinsurer | Retakaful, an activity exempt from FINMA licensing |
Documents usually requested in Switzerland
- Passport or identity card and residence permit
- Certificate of residence issued by the municipality
- Vehicle registration document for motor insurance
- Lease or land register extract for household or buildings insurance
- Health questionnaire for supplementary or death cover
What to avoid in Switzerland
- Buying from a Gulf or Asian takaful operator for a risk located in Switzerland, when it has neither a branch nor a FINMA licence there.
- Believing Swiss Life or Zurich sell takaful to individuals in Switzerland, when their Islamic activities concern France, the Emirates or Malaysia.
- Putting off basic health insurance or motor liability while waiting for a local Islamic offer that does not yet exist.
- Accepting an Islamic label without knowing the sharia committee, the management model or the surplus-sharing rule.
Takaful in Switzerland: your queries
Could a takaful operator set up in Switzerland?
Yes, nothing prevents it: it would need a FINMA licence and the form of a company limited by shares or a cooperative. A foreign operator would have to open a branch, set up an organisation fund and lodge a deposit with the Swiss National Bank.
Why do the big Swiss insurers run takaful elsewhere?
Because demand and dedicated frameworks are found in the Middle East and Asia. Zurich teamed up with Abu Dhabi National Takaful in 2008 and then bought MAA Takaful in 2016, while Swiss Re obtained a Malaysian retakaful licence in 2009.
Is an insurance cooperative an acceptable alternative?
It shares with takaful the idea of a community of policyholders without outside shareholders, but it has neither a donation fund nor a sharia committee. Its religious acceptability depends on its investments and contracts, which should be put to a scholar.
Is retakaful really exempt from licensing in Switzerland?
According to the MLL Legal guide updated in 2021, pure reinsurance requires no FINMA licence, which also applies to retakaful. This exemption does not extend to direct insurance of individuals, which remains subject to authorisation.
Takaful operators and organisations
Qatar Islamic InsuranceQatari Islamic insurer offering family and general takaful products to individuals and companies.SALAMA – Islamic Arab InsuranceUAE-based Islamic insurance group present in several countries with takaful health and protection products.Prudential BSN TakafulMalaysian takaful operator, a joint venture of Prudential and Bank Simpanan Nasional, offering family and general takaful cover.Indicative list: assuranceislamique.com has no commercial link with these organisations. Always check the licence with the local regulator.