Contrary to common perceptions, insurance as a concept is acceptable under Sharia financial principles. However, similar to the banking system, Islamic financial laws do have reservations on the way the conventional insurance business is practiced and the way the rights and obligations of different parties are defined under conventional insurance.
Conventional form of insurance is prohibited under Islamic law since it contains elements of riba (interest), gharar (uncertainty) and maysir (gambling)……………………………………….Full Article: Source