Pru Life UK said Tuesday it received the country’s first Takaful (Islamic insurance) license from the Insurance Commission.
“Filling in the long-standing gap for Shari’ah-compliant insurance, 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,” the life insurance firm said in a statement.
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. In the Philippines, Takaful will not only close the gap for insurance that complies with Shariah rules and principles for Muslim Filipinos, but will also broaden the options for the rest of the population as Takaful is available for all, Muslims and non-Muslims alike.
To set up its Takaful operations, Pru Life UK 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.
“Our Takaful launch will be a defining milestone not just for Pru Life UK but for the entire Philippine insurance sector,” said Sanjay Chakrabarty, president and chief executive of Pru Life UK.
“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,” said Chakrabarty.
Pru Life UK’s pioneering approach to Takaful emphasizes a holistic journey, including stakeholder collaboration, thought leadership, community investment, specialized training for agents and public awareness educational initiatives.
By working closely with the Muslim Filipino communities and their leaders, Pru Life UK will ensure that its Takaful journey remains culturally relevant and tailored to the unique needs of the Muslim community.
Central to this initiative will be efforts to promote financial literacy and economic empowerment in areas like Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Zamboanga Peninsula, where financial inclusion challenges are most acute.
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.
With close to 7 million Muslims residing in the Philippines, primarily in regions such as BARMM and the Zamboanga Peninsula, where many remain without bank accounts or uninsured, the initiative has the potential to transform the landscape of financial services in these communities.
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.
