THE Philippines’ first Takaful or Islamic insurance license has been issued by the Insurance Commission to Pru Life UK.
The announcement was officially made during an event launch held in Manila Monday evening.
This breakthrough is set to advance financial inclusion especially for the over seven million Muslim Filipinos and support the government’s efforts to promote and develop Islamic finance.
“This groundbreaking initiative opens new doors of opportunity for the insurance industry, to serve more of our countrymen, especially in the vibrant Muslim communities,” insurance commissioner Reynaldo Regalado said during the launch.
“The Philippines is home to approximately seven million Muslims, accounting for about 6.4 percent of the total population. However, despite this significant number, they have been underserved in terms of financial services and access to conventional banking and insurance products,” he added.
Takaful, a Shariah-compliant form of insurance, means joint guarantee.
It is founded on cooperative arrangement and aligns with the principles of mutuality and solidarity.
“Our Takaful launch will be a defining milestone not just for Pru Life UK but for the entire Philippine insurance sector,” Sanjay Chakrabarty, president and CEO of Pru Life UK, said.
“We are honoured to be at the forefront of this significant development to bring Shari’ah compliant financial protection solutions for the first time. With Prudential’s regional expertise and our commitment to inclusivity, we aim to set new standards for financial protection that resonate with every Filipino, regardless of their faith,” he added.
In the Philippines, Takaful is seen to also broaden the options for the rest of the population since it will be available for all, Muslims and non-Muslims alike.
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 a robust Shariah governance that is supervised by its newly created Shari’ah Committee and imbibes the best practices from the insurer’s Takaful affiliates abroad.
Central to this initiative will be efforts to promote financial literacy and economic empowerment in areas like Bangsamoro Autonomous Region in Muslim Mindanao and the Zamboanga Peninsula, where financial inclusion challenges are most acute.
