The P9 billion-odd market for takaful, or Islamic insurance, remains small in the Philippines but is slowly gaining ground as insurers step up efforts to widen awareness and use, particularly in Mindanao.
The insurer Pru Life UK recently held a dialogue for this porpose with Muslim religious leaders, or Ulama, from Cagayan de Oro, Cotabato, Davao Region, Lanao del Norte and Zamboanga to help explain Islamic finance and takaful and how these can serve Muslim communities.
The company said the discussions sought to build understanding of ethical, Shariah-compliant financial protection based on values such as mutual help, shared responsibility and solidarity. Religious leaders play a key role in guiding community decisions, especially on faith-based financial matters, it added.
Pru Life UK said it has engaged Islamic communities even before launching its takaful operations, as the concept is still new in the country. “Takaful is new in the Philippines, so building trust and awareness is important to ensure sustainable financial empowerment in Mindanao,” said Maricel Estavillo, the company’s sustainability officer and takaful head.
Industry analysts have projected the Islamic insurance business to have grown over P23 billion by 2033, or less than 10 years after the Insurance Commission issued the first license in 2024.
Participants noted growing interest in Shariah-compliant financial products and stressed the need for financial literacy programmes that combine religious guidance with modern financial planning.
The initiative supports government efforts to expand Islamic finance and improve financial inclusion in Mindanao. With nearly 10 million Muslims in the Philippines, demand is rising for financial products that align with Islamic beliefs, insurers said.
Insurers with takaful windows like Pru Life UK bear the brunt of promoting the business in the Philippines at the moment as the various banks have yet to decide how to serve the needs of some 10 million Muslim Filipinos.
