Pru Life UK launches PH's first Islamic insurance
ISLAMIC INSURANCE. Insurance Commissioner Reynaldo Regalado (left) gives the Takaful or Islamic insurance license to Pru Life UK President and CEO Sanjay Chakrabarty and Prudential Strategic Business Group Managing Director Solmaz Altin during a ceremony on Monday (Nov. 4, 2024) at the Manila Hotel. Takaful is a Shariah-compliant form of insurance. (Photo from Pru Life UK)
MANILA – Pru Life UK has launched the Philippines' first Takaful (Islamic insurance) as part of its initiative to advance financial inclusion for the over seven million Muslim Filipinos in the country.
The Takaful license from the Insurance Commission was given to Pru Life during a ceremony held at the Manila Hotel late Monday.
Takaful, a Shariah-compliant form of insurance, means a joint guarantee.
"This groundbreaking initiative opens new doors of opportunity for the insurance industry, to serve more of our countrymen, especially in the vibrant Muslim communities. The Philippines is home to approximately seven million Muslims, accounting to about 6.4 percent of the total population," said Insurance Commissioner Reynaldo Regalado.
Regalado however said that despite the significant number, Muslims have been underserved in terms of financial services and access to conventional banking and insurance products.
"This challenge has contributed to prevalent poverty and lack of financial security within these communities. Recognizing this need for inclusive financial services, the Insurance Commission in cooperation with insurance companies and industry players has been in the works to introduce Takaful, Islamic insurance in the country," he said.
This initiative plays a crucial role in improving insurance penetration and developing a more resilient financial sector that serves every Filipino, regardless of their faith and other background," he added.
Regalado said Takaful focuses on socially responsible investments presently aligned with environmental, social, and governance principles.
"The introduction of Takaful to the Philippine market is set to revolutionize the insurance landscape by presenting an alternative that emphasizes ethical financial practices and community-driven support. The values of shared responsibility and mutual aid that Takaful promotes align closely with the traditions of Filipino Muslim culture," he said.
To set up its Takaful operations, Pru Life UK has worked with its Prudential affiliates with established Takaful operations in Malaysia and Indonesia.
Pru Life UK’s Takaful operation is supported by Shariah governance that is supervised by its newly created Shari’ah Committee, and imbibes the best practices from the insurer’s Takaful affiliates abroad.
"We believe Takaful has the potential to become a driving force in this country's financial inclusion goal. It can bridge the gap in Philippines' Islamic finance, which so far has only Islamic banking and investment. It addresses the protection needs of Muslim Filipinos, uplifting the financial security of the community," said Sanjay Chakrabarty, President and CEO of Pru Life UK.
Pru Life UK developed comprehensive training programs for its selected agents, equipping them with in-depth knowledge of Takaful principles and will launch public awareness campaigns to educate communities on the benefits of Takaful. (PNA)
