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- EDD K. USMAN | Twitter: @edd1819 | Instagram: @bluestar0910 |Facebook: SDN – SciTech and Digital News
MANILA HOTEL, Manila (SDN) — After receiving its license from the Insurance Commission (IC), Pru Life UK expects to start offering Takaful — Islamic insurance — product, early next year in the Philippines.
Pru Life UK President and CEO Sanjay Chakrabarty made his projection known to SDN – SciTech & Digital News in an exclusive interview.
“So, right now, we got the authorization letter. What that means is that we got the right structure to launch a takaful insurance. We have a Shari’ah Committee, we have our investment plan, our investment structure has been approved,” he emphasizes.
Insurance Commissioner Reynaldo A. Regalado handed over to Chakrabarty the license for Pru Life UK’s Islamic insurance at the Maynila Ballroom of this landmark hotel on November 4. Various industry dignitaries, government officials, Muslim leaders, and other guests witnessed the launch of Takaful, which means “mutual guarantee”.
Aside from Chakrabarty and Regalado, other attendees included Prudential Strategic Business Group Managing Director Solmaz Altin; Dean Julkipli M. Wadi of the Institute of Islamic Studies at the University of the Philippines (UP-IIS) Diliman, Quezon City, lawyer Mehol K. Sadain, former secretary of the National Commission on Muslim Filipinos (NCMF); Administrator Jadjurie Arasa of the Blue Mosque in Maharlika Village, Taguig City; Moro/Tausug leader Ike Tawasil, from the Bangko Sentral ng Pilipinas (BSP), and many others.
The president of Pru Life UK assured that his company now has the structure, the platform in place for the next step which is launching the product for the Islamic insurance. He added the company’s Focus Group will determine and understand what are the products that are suited in the country.
He added that not everyone is allowed to do business in Takaful.
“They have to be trained in Shari’ah. So, we expect that at some point we should be able to have 3,000 to 4,000 agents who are capable of talking to customers on what the product is, because in Prudential we make sure that whenever we are selling a product it’s done in the right way. Pru Life UK is a subsidiary of the giant Prudential Plc.
“So, we will have the needed expertise and the agents selling takaful and, maybe, (in early) Quarter 1 of next year we should already be selling our product,” he says.
He added that the idea behind the Takaful offering “is to drive financial inclusion, so it will be extremely affordable and addressed to people who are underserved.”
Insurance Commission’s opening of Takaful Window paves way for Pru Life UK
One more thing, Chakrabarty sees the addition of more products in the future that will cater across socio-economic segments of society.
In his speech at the launch of the Philippines’ first Islamic insurance, meaning it’s compliant with the Shari’ah Law which prohibits interest, he emphasized Pru Life UK’s being always committed to making financial security accessible to more Filipinos and broadening options such as Takaful.
He noted the launch is an important step towards the company’s commitment.
“So, what is Takaful? While Takaful may sound new, it is not. It’s a concept that is already embedded in the Filipino culture and identity. Takaful resembles bayanihan which refers to the spirit of communal unity and cooperation and ‘paluwagan’, a fund pooling system which provides members a form of financial relief in times of emergency,” Chakrabarty points out.
In his own remarks at the event, Regalado congratulated “Pru Life UK for the success of its Takaful window” and the product’s launch.
He commended Pru Life UK for what he described the company’s dedication in serving the country’s diverse population. Regalado dubbed Takaful a “groundbreaking initiative” that will pave the way for new doors of opportunity for the country’s insurance industry to serve Filipinos, “especially our vibrant Muslim community.”
“This initiative plays a crucial role in insurance penetration and developing a more resilient insurance landscape to serves Filipinos regardless of faith.
“The introduction of Takaful to the Philippine market is set to revolutionize the insurance landscape by presenting an alternative that emphasizes ethical financial practices and community driven support,” the insurance commissioner observes.
Wadi described the launch of Takaful as “significant milestone,” which he says is an “interest-free and Shari’ah-compliant support system.”
He adds: “This is initiative is another brick in the house of Philippine Halal and Islamic Finance. It reflects our commitment to fostering a robust halal ecosystem.”
The UP-IIS dean recalled the Insurance Commission’s Circular Letter No. 2024-13 that established a Takaful Window. “This proactive approach positions the Philippines to tap into the global Islamic finance market, which has grown by 11 percent to US$4.5 trillion in 2022.”
Pru Life UK’s launch of Takaful, he noted, provides strength to the country’s halal ecosystem, encompassing finance, banking, and investment, which he noted is fitting with a legacy that President Ferdinand E. Marcos, Sr. initiated a half century ago that laid the foundation for the Philippines’ Shari’ah and halal landscape.
“This foundation was established through key developments, such as the creation of Al-Amanah Islamic Investment Bank (AAIIB) and the UP Institute of Islamic Studies. Over the years, we have seen significant progress, including the passing of the Bangsamoro Organic Law in 2018 followed by Islamic Banking Law in 2019; and recently, the new law mandating the establishment of Shari’ah Courts nationwide,” Wadi points out.
Takaful success in Malaysia and Indonesia shows Islamic insurance’s potential
Altin of the giant Prudential Plc group, Pru Life UK’s mother company, described the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as one of the Philippines’ “least financially inclusive regions.”
“With our Takaful offering, we aim to change that narrative. Our goal is not just to offer insurance but provide a pathway to financial empowerment for millions of Muslim Filipinos, supporting their needs in a way that aligns with their faith and values,” he emphasizes.
“Takaful,” he adds, “is more than just an insurance product; it’s a way for us to build resilient communities and promote long-term growth in the Philippines and beyond. This initiative is part of our broader focus on expanding across Asia and Africa, regions with vibrant, growing economies and significant Muslim population.”
Wadi, of course, did not forget UP-IIS’s important role. “In line with the ‘UP Strategic Plan 20023-2029,’ the Institute is dedicated to transforming academic community engagement, furthering our aim of a comprehensive Islamic studies program as contained in the Vision 2023 of the UP New Institute of Islamic Studies Complex.”
Altin assured that Prudential is not starting from zero in its Takaful offering in the Philippines, saying the company has strong track record in Islamic insurance operations in markets that have significant Muslim populations, including in Malaysia and in Indonesia where they have Shari’ah-compliant products.
“Our success in these countries demonstrates the potential of Takaful to create positive economic and social impact, a vision we now bring to the Philippines,” he remarks.
The Prudential Plc official said the launch of Islamic insurance operation in the country transcends business milestone. “It is a testament to Prudential’s unwavering commitment to innovation, inclusivity, and making positive impact in the lives of those we serve. We look forward to working with each of you to expand our reach, deepen our partnerships, and build a brighter, more inclusive future for everyone,” says Altin. (/)