Pakistan: Pak-Qatar Family Takaful, Instaful Solutions tie up to promote bancatakaful
Source: Middle East Insurance Review | Jan 2024
In December, Pak-Qatar Family Takaful and Instaful Solutions entered into a strategic partnership to introduce inclusive bancatakaful, reported Urdupoint. “Bancatakaful, an innovative distribution model, involves offering takaful products to bank customers, primarily to depositors,” a news release said.
Unlike traditional bancatakaful, which typically targets a subgroup of wealthier individuals with higher deposit amounts, the new initiative aimed to address the needs of the majority, middle- or low-net-worth individuals, comprising 60%-70% of total bank depositors.
“These customers are exposed to host of savings, investment and protection needs which largely remain unserved under current model.”
“The concept of inclusive bancatakaful is in essence digital bancatakaful and revolves around offering a range of innovative products and solutions to the currently ignored middle segment of banks through the use of technology,” said the news release.
Instaful Solutions founder and CEO Rehan Butt said, “The Pakistani takaful market must shift its focus beyond a small niche and adopt market-creating strategies to support the SECP’s journey to financial inclusion in Pakistan.”