The British Islamic Insurance Holdings (BIIH) has signed-off on an £87m ITO deal with Capita. BIIH provides insurance services that are compatible with the Muslim faith.

The eight-year deal will see Capita provide full front and back office services including selling and administering new policies, managing the claims process and managing customer relations.

BIIH CEO, Bradley Brandon-Cross commented on the deal: "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."

Capita will handle the contract from its existing office in Cheadle from which it will deliver customer sales, servicing and claims management.