Pru Life UK has launched the Philippines’ first Takaful, a form of Islamic insurance, aiming to enhance financial inclusion for over seven million Muslim Filipinos.
Takaful, which complies with Shariah law, represents a mutual guarantee among participants.
“This groundbreaking initiative opens new doors of opportunity for the insurance industry, to serve more of our countrymen, especially in the vibrant Muslim communities,” said Insurance Commissioner Reynaldo Regalado.
He noted that Muslims make up approximately 6.4% of the Philippine population but have historically been underserved by financial services.
Regalado emphasized that this lack of access has contributed to poverty and financial insecurity within these communities.
The Insurance Commission, in collaboration with various stakeholders, has been working to introduce Takaful to address this gap.
The initiative aims to improve insurance penetration and foster a more resilient financial sector that serves all Filipinos, regardless of faith or background. Takaful will also focus on socially responsible investments aligned with environmental, social, and governance (ESG) criteria.
“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 establish its Takaful operations, Pru Life UK partnered with Prudential affiliates experienced in Takaful in Malaysia and Indonesia. The operation will be overseen by a newly established Shari’ah Committee to ensure compliance with Islamic law and best practices.
Sanjay Chakrabarty, president and CEO of Pru Life UK, said that Takaful could become a key driver of financial inclusion, addressing the protection needs of Muslim Filipinos and uplifting the financial security of their communities.
Pru Life UK plans to provide comprehensive training for its agents on Takaful principles and will launch awareness campaigns to educate communities on its benefits. (PNA)
