The insurance industry in the Philippines has been steadily evolving, reflecting broader economic trends and changing consumer needs. Etiqa Philippines, one of the country’s leading names in insurance, fully understands this—which is why it has been pulling all the stops to introduce Takaful to the country.

Takaful is a unique and ethical financial model rooted in the principles of mutual cooperation, shared responsibility, and social solidarity. The concept is grounded in Shariah law, emphasizing fairness, transparency, and ethical investment, which sets it apart from conventional insurance models. Derived from the Arabic word "kafala" or "kafalat" meaning to guarantee or take care of one another, Takaful operates as a cooperative system where participants contribute to a pool of funds. These funds are then used to support individuals within the group in times of need, embodying the principle of collective care.

How Takaful Works

In a Takaful system, participants contribute a set amount of money, known as a contribution, to a shared pool of funds. This fund is managed by a Takaful Operator, whose responsibility is to oversee the administration of funds, assess risks, and pay out claims. What makes Takaful distinct is its ethical framework. It strictly prohibits investments in sectors deemed harmful or unethical, such as gambling, alcohol, and tobacco. Instead, it focuses on industries that align with environmental, social, and governance (ESG) principles, ensuring that your money is invested in a socially responsible manner that is in line with your values.

One of the key benefits of Takaful is its principles and how it operates. After claims are settled and expenses are deducted, any distributable surplus in the fund is shared among participants, fostering a sense of community and collective financial well-being. This system of shared risk and shared reward ensures that Takaful is more than just an insurance policy—it is a community-oriented initiative that promotes financial inclusivity and mutual aid.

The appeal of Takaful lies not only in its adherence to Islamic principles but also in its inclusive and equitable approach, which resonates with people of different faiths and backgrounds.

Etiqa: the Ethical and Expert Proponent of Takaful

Etiqa, part of the Maybank Group, is a major player in the ASEAN region with a strong presence in Malaysia, Singapore, Philippines, Cambodia, and Indonesia, offering a full range of Life and General insurance products, including Takaful plans. Established as one of the most innovative insurance providers, Etiqa has been a forerunner in promoting Takaful in Malaysia and is now bringing its expertise to the Philippines.

In the region, Etiqa has built a strong reputation for providing fast, reliable, and customer-centric services across Southeast Asia. In Malaysia, it has been billed as the largest local insurer, the leading Bancassurance player with a 21.1% market share based on Annualized Premium Equivalent, and the No.1 General Takaful player and online General Insurance and Takaful player with a 53.1% market share.

Locally, Etiqa Life and General Assurance Philippines, Inc. has over 60 years in the group insurance space, starting in 1958 as Star Life Insurance until it became AsianLife. In 2015, Maybank, one of Asia’s leading bank groups, purchased shares of AsianLife and rebranded it in 2019, naming it Etiqa Philippines to align it with its parent organization, Etiqa International Holdings Malaysia, an investment holding company of Maybank. Our headquarters is located in Kuala Lumpur, Malaysia.

Why Takaful Makes Sense for the Philippines

The entry of Takaful to the Philippine market could revolutionize the local insurance industry by offering an alternative that promotes ethical financial practices and community-driven support systems. Takaful’s emphasis on shared responsibility and mutual care mirrors the values that Filipinos hold dear, making it a product that could appeal to both Muslims and non-Muslims alike.

Furthermore, Takaful’s focus on ethical investments aligns with the growing demand for ESG-compliant financial products, positioning Etiqa as a leader in socially responsible insurance.

A Positive Outlook for Takaful in the Philippines

Takaful is not just about financial protection but about fostering a community that supports each other through life’s uncertainties. Etiqa believes that Filipinos stand to benefit greatly from the ethical and cooperative approach to insurance offered by Takaful. Etiqa strongly opines that Takaful has the potential to empower individuals, uplift communities, and contribute to the country’s progress by providing financial security that is rooted in shared values and ethical principles.

Etiqa’s Takaful Insurance products will soon be available on Etiqa Philippines’ website, https://www.etiqa.com.ph, and select Cebuana Lhuillier stores nationwide.