The rapid development of the Islamic financial sector, which has been called interest-free finance in recent years, has led the sector to stand out in international financial institutions. In the countries where the Muslim population is high, participation insurance is becoming more important and its applicability is increasing. Especially given the religious sensitivities aspects of participation insurances, although there have also found application in Turkey, it has not completed fully its development. The aim of this study is to examine the concept of participation insurance, conceptualization of participation insurance as a continuation of interest-free finance sector, models and operational process. As a method of study, literature review is given and the study is supported with data related to participation insurance companies. In the study, it is concluded that participation insurance has an increasing importance and share within the Islamic finance sector.