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FEAST OF SACRIFICE. Despite the intermittent rain, Filipino Muslims gather for morning prayers at the Quezon Memorial Circle in Quezon City on June 16, 2024, to celebrate Eid’l Adha.
Jire Carreon/Rappler
The Philippines’ Islamic finance and banking scene remains an underserved market, with just two licensed Takaful insurance operators catering to around 7 million Muslim Filipinos
MANILA, Philippines – Pru Life UK may roll out its Takaful insurance offering in April pending regulatory approval, its president and chief executive officer Sanjay Chakrabarty said.
According to Chakrabarty, the company is “very close” to rolling out its Takaful insurance in the Philippines. However, he did not provide a specific date since they are still awaiting the final approval of the Insurance Commission (IC).
The UK-based insurer secured the country’s first Takaful insurance license in November 2024.
Takaful is a Shariah-compliant insurance which operates on the principle of “mutual support.” Members contribute to a common fund which covers their insurance needs, and their money is invested in Shariah-compliant businesses.
In contrast, traditional insurance policies often bear interest, which is forbidden in Islam.
The Philippines’ Islamic finance and banking scene remains an underserved market, with just three banks currently offering Shariah-compliant services to around 7 million Muslim Filipinos.
In the insurance industry, Pru Life UK and Etiqa are the only firms licensed to offer Takaful insurance so far.
“We really hope that when we roll it out, we will be able to drive penetration in one of the most unserved, underserved [areas] of the country,” Chakrabarty said.
Once its Takaful insurance is rolled out to the Philippine market, Pru Life UK is looking to offer micro-Takaful insurance and Shariah-compliant endowments. Chakrabarty described the latter as Pru Life’s next step in terms of product progression.
Double-digit growth targets in 2025
According to IC data, Pru Life UK logged the highest New Business Annual Premium Equivalent (NBAPE) in 2024 at P9.8 billion. This measures the total value of new life insurance policies sold.
Meanwhile, its total premium income climbed 12% to P48.2 billion, while risk-based capital ratio was stronger at 491% compared to 453% in 2023. Risk-based capital ratio measures whether a financial company’s capital is enough to absorb potential losses.
Chakrabarty attributed this to Pru Life UK’s understanding of its customers’ needs, which resulted in an 82.5% customer retention rate in 2024.
“We sell them products that suit their needs in the first place so that they see value in paying for their insurance policy,” he said.
Without disclosing specific figures, Pru Life UK officials said the company is eyeing double-digit growth in the Philippine market in 2025. – Rappler.com
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