The insurer Pru Life UK has made history by receiving the first takaful or Islamic insurance license in the Philippines from the Insurance Commission. The landmark achievement addresses the long-standing need for Shari’ah-compliant insurance, aiming to enhance financial inclusion for over seven million Muslim Filipinos and support the government’s initiatives in Islamic finance development.
Takaful, which translates to “joint guarantee,” operates on principles of mutual cooperation and solidarity, providing a viable insurance option that adheres to Islamic law. Not only will Takaful cater to the Muslim community, but it is also available to all Filipinos, thus expanding insurance options nationwide.
To establish its takaful operations, Pru Life UK collaborated with its Prudential affiliates with established takaful practices in Malaysia and Indonesia. The operation is underpinned by a strong Shari’ah governance framework, overseen by a newly formed Shari’ah Committee, ensuring adherence to best practices.
The announcement was made during a launch event at the Manila Hotel, attended by dignitaries from government, foreign embassies, academia, and the Muslim community.
Sanjay Chakrabarty, president and CEO of Pru Life UK, emphasized the significance of this development: “Our Takaful launch will be a defining milestone not just for Pru Life UK but for the entire Philippine insurance sector. We are honoured to bring Shari’ah-compliant financial protection solutions for the first time, aiming to set new standards that resonate with every Filipino.”
Pru Life UK’s approach to takaful focuses on holistic community engagement, including collaboration with stakeholders, thought leadership, community investments, and specialized training for agents. The company aims to ensure its Takaful offerings are culturally relevant and meet the unique needs of the Muslim community.
A key component of this initiative is promoting financial literacy and economic empowerment, particularly in underserved areas like the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Zamboanga Peninsula. Pru Life UK plans to implement comprehensive training programs for its agents and launch public awareness campaigns to educate communities about takaful’s benefits.
With a significant portion of the Muslim population in the Philippines still uninsured or lacking access to financial services, Pru Life UK’s Takaful initiative has the potential to transform the landscape of financial inclusion, offering solutions that are both culturally sensitive and responsive to the needs of underserved communities.
