First Islamic insurance in Phl to bridge social protection gap

The government has issued the first Takaful or Islamic insurance license in the country amid the need to bridge the gap in social protection and offer a more affordable option to Muslim and non-Muslim Filipinos.

- Louise Maureen Simeon

The Insurance Commission (IC) has given Pru Life UK the first Takaful license, a Shariah-compliant form of insurance which means joint guarantee.

During the Takaful launch late Monday night, Pru Life president and CEO Sanjay Chakrabarty said Takaful products would focus on savings and protection. These will initially target the seven million Muslims residing in the Philippines.

Muslim Filipinos are largely unprotected due to restrictions in the traditional insurance policies that do not comply with Shariah rules and principles. This has also contributed to prevalent poverty and lack of financial security within their communities.