Pru Life UK has made history by securing the Philippines’ first Takaful (Islamic insurance) license, filling a crucial gap in Shari’ah-compliant insurance and paving the way for broader financial inclusion, particularly for over seven million Muslim Filipinos. Issued by the Insurance Commission, this breakthrough aims to support the government’s Islamic finance initiatives and offer financial protection solutions that adhere to Shari’ah principles.
The concept of Takaful, which means “joint guarantee,” is based on mutuality and solidarity, structured as a cooperative model rather than traditional insurance. This Shari’ah-compliant framework not only meets the specific needs of Muslim Filipinos but is also available to non-Muslims, creating a financial protection option for all Filipinos.
To establish its Takaful operations, Pru Life UK collaborated with its affiliates in Malaysia and Indonesia, adopting best practices from their successful Takaful models and instituting a dedicated Shari’ah Committee to oversee governance and ensure compliance with Islamic principles.
“Our Takaful launch will be a defining milestone not just for Pru Life UK but for the entire Philippine insurance sector. We are honored to bring Shari’ah-compliant financial protection solutions to the market, setting new standards for inclusivity in financial services for all Filipinos.” said Pru Life UK President and CEO Sanjay Chakrabarty.
The Takaful launch includes a comprehensive outreach to raise awareness and improve financial literacy within Muslim communities, particularly in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Zamboanga Peninsula, where financial inclusion challenges are most pronounced.
With close to seven million Muslims residing in the Philippines, many of whom remain without bank accounts or insurance, Pru Life UK’s Takaful initiative seeks to close the gap in financial services by offering culturally respectful insurance solutions tailored to these underserved populations.
With this landmark Takaful offering, Pru Life UK is not only making Shari’ah-compliant insurance accessible in the Philippines but is also setting a precedent for culturally sensitive and inclusive financial services that could influence the future of the nation’s insurance sector.
