Pru Life UK has made history as it received the first takaful licence in the Philippines.
The licence was granted by the industry regulator, the Insurance Commission, says Pru Life UK in a statement.
Filling in the long-standing gap for Shariah-compliant insurance in the Philippines, this breakthrough is set to advance financial inclusion, especially for the over 7m Muslim Filipinos, and support the government’s efforts to promote and develop Islamic finance.
In the Philippines, takaful will not only close the gap for insurance that complies with Shariah rules and principles for Muslim Filipinos, but it will also broaden the options for the rest of the population since takaful is available for all, Muslims and non-Muslims alike.
To set up its takaful operations, Pru Life UK has worked with its Prudential affiliates with established takaful operations in Malaysia and Indonesia.
Pru Life UK’s takaful operation is supported by a robust Shariah governance that is supervised by its newly created Shari’h Committee and imbibes the best practices from the insurer’s takaful affiliates abroad.
At a launch event at the Manila Hotel on 4 November, Mr Sanjay Chakrabarty, president and CEO of Pru Life UK, said, "With Prudential’s regional expertise and our commitment to inclusivity, we aim to set new standards for financial protection that resonate with every Filipino, regardless of their faith."
Pru Life UK's pioneering approach to takaful emphasises a holistic journey, including stakeholder collaboration, thought leadership, community investment, specialised training for agents, and public awareness educational initiatives.
By working closely with the Muslim Filipino communities and their leaders, Pru Life UK will ensure that its Takaful journey remains culturally relevant and tailored to the unique needs of the Muslim community.
Central to this initiative will be efforts to promote financial literacy and economic empowerment in areas like Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Zamboanga Peninsula, where financial inclusion challenges are most acute.
Pru Life UK has developed comprehensive training programmes for its selected agents, equipping them with in-depth knowledge of takaful principles, and will launch public awareness campaigns to educate communities on the benefits of takaful.
With close to 7m Muslims residing in the Philippines, primarily in regions such as BARMM and the Zamboanga Peninsula, where many remain without bank accounts or uninsured, this initiative has the potential to transform the landscape of financial services in these communities.