Pru Life UK, AAIIBP to promote Islamic finance

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Following its receipt of Takaful operator license last year, Pru Life UK yesterday said it is partnering with Al Amanah Islamic Investment Bank of the Philippines (AAIIBP), the country’s first Islamic Bank, to promote Islamic finance and Takaful insurance.

The partnership will involve financial education and capacity-building initiatives to help expand reach of financial inclusion to more Filipino communities, primarily in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

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.

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In the Philippines, the Insurance Commission said Takaful will not only close the gap for insurance that complies with Shariah rules and principles for Muslim Filipinos, it will also broaden the options for the rest of the population since Takaful is available for all, Muslims and non-Muslims alike.

“Pru Life UK’s Takaful journey is driven by our commitment to social inclusion, aiming to provide financial protection to more Filipino families,” Atty. Paul Mandal, Pru Life UK’s chief legal for Government Relations and Sustainability, said.

Mandal said Pru Life UK is preparing to introduce an insurance product, subject to regulatory approval that is compliant with Shariah rules and principles, in support of the Philippine government’s financial inclusion thrust, and help Muslim and non-Muslim Filipinos achieve financial security.

AAIIBP is the first Islamic bank in the country with the mandate to promote and accelerate socio-economic development through banking, financing and participating in agricultural, commercial and industrial ventures based on the concept of Islamic banking.

“As the country’s first Islamic bank, AAIIBP is committed to advancing financial inclusion through Shariah-compliant solutions. The partnership with Pru Life UK on financial education and capacity building is a significant milestone in our efforts to uplift Muslim communities and empower them to become key contributors to the nation’s progress,” said AAIIBP’s Chairman & CEO Amilbahar Amilasan, Jr., said.

With close to 7 million Muslims residing in the Philippines, primarily in regions such as BARMM and the Zamboanga Peninsula, this initiative has the potential to transform the landscape of financial services in these communities where many remain without bank accounts or uninsured.

Mandal said Pru Life UK’s introduction of Takaful will aim to close the gap in insurance coverage, offering solutions that are not only culturally respectful but also directly responsive to the needs of these underserved populations.

He added that part of Pru Life UK’s Takaful journey is the roll out of community investment and engagement initiatives.

In October 2024, the insurer launched the “Adopt-a-Madrasah Program” covering over 450 students and teachers from three community madrasahs in Bangkal, Davao City. Pru Life UK targets to expand the reach of this program and launch financial education sessions in key sites across the country especially in Mindanao this year.

Established in 1996, Pru Life UK is the pioneer of insuravest, or investment-linked life insurance products, in the Philippines and is one of the first life insurance companies approved to distribute US dollar-denominated investment-linked life insurance policies in the country.

Since its establishment, Pru Life UK has expanded its reach to over 170 branches and general agency offices in the Philippines, with the largest life insurance agency force with more than 39,000 licensed agents.

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