Insurer Pru Life UK received the Philippines’ first Takaful license, boosting financial inclusion for the country’s Muslim population. Granted by the Insurance Commission, the license allows Pru Life UK to offer Shari’ah-compliant insurance, or Takaful, designed to meet the specific financial needs of Muslim Filipinos.
Takaful, meaning “joint guarantee,” operates on principles of mutuality and solidarity. Unlike traditional insurance, Takaful aligns with Shari’ah laws, enabling policyholders to contribute to a shared fund, which is used to support those in need. This model is available to everyone, regardless of religious beliefs, expanding insurance options for Filipinos across the board.
“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,” said Sanjay Chakrabarty, president and CEO of Pru Life UK.
The initiative is especially significant for the estimated seven million Muslims in the Philippines, many of whom live in underserved regions such as the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Zamboanga Peninsula. Through public awareness campaigns and training programs for selected agents, Pru Life UK aims to empower these communities and boost financial literacy around Takaful.
To ensure alignment with Shari’ah principles, Pru Life UK has established a Shari’ah Committee and is incorporating best practices from its Takaful affiliates in Malaysia and Indonesia. By collaborating closely with Muslim community leaders, the company seeks to make Takaful culturally relevant and accessible.
“Our Takaful journey will prioritize education and community investment, promoting financial empowerment and providing culturally respectful insurance solutions,” said Chakrabarty.