The Philippine insurance industry is on the verge of a significant evolution as Etiqa Philippines prepares to launch Takaful insurance in the country. This new offering marks a shift toward ethical, cooperative, and community-centered financial protection, catering to the growing demand for socially responsible investment options in the region.
Rooted in the principles of Shariah law, Takaful operates under the concepts of mutual cooperation, shared responsibility, and social solidarity, setting it apart from traditional insurance. Derived from the Arabic term “kafala,” meaning “to take care of one another,” Takaful functions as a cooperative system where participants contribute to a fund used to support those in need within the group. This mutual aid model underscores a commitment to collective welfare, aligning with values of financial inclusivity and ethical investment.
In the Takaful system, participants contribute a pre-determined amount, known as a contribution, into a pooled fund. This fund is managed by a Takaful Operator who oversees risk assessment, fund administration, and claim payments. Unlike traditional insurance, Takaful prohibits investments in sectors considered unethical — such as gambling, alcohol, and tobacco — while prioritizing industries that align with Environmental, Social, and Governance (ESG) standards. This commitment ensures that funds are used for socially responsible purposes, appealing to individuals who value ethical and sustainable investments.
Etiqa, part of the Maybank Group, is at the forefront of this initiative. With a solid footprint in ASEAN markets like Malaysia, Singapore, and Indonesia, Etiqa has earned a reputation for offering fast, reliable, and customer-centric services. It holds a dominant position in Malaysia as the largest local insurer and the leading Takaful provider, boasting a market share of 53.1% in general Takaful.
In the Philippines, Etiqa Life and General Assurance Philippines, Inc. has over six decades of expertise, initially established as Star Life Insurance in 1958 and later becoming AsianLife. Following its acquisition by Maybank in 2015, the company rebranded to Etiqa Philippines in 2019, aligning with its parent organization’s mission to introduce innovative and ethical financial solutions in the region.
Takaful’s entry into the Philippine market has the potential to transform the insurance landscape by offering a model rooted in ethics and collective care. Its focus on mutual support and shared responsibility resonates deeply with Filipino values, making it accessible to both Muslims and non-Muslims. Additionally, the emphasis on ethical investments meets the growing demand for ESG-compliant financial products, placing Etiqa at the forefront of socially responsible insurance.
According to Etiqa, Takaful is not merely an insurance policy but a means to empower individuals, uplift communities, and provide financial security based on shared values. This ethical approach to insurance fosters a sense of community while offering protection during life’s uncertainties. Takaful Insurance products will soon be available on the Etiqa Philippines website and at select Cebuana Lhuillier outlets nationwide. This launch is anticipated to introduce a new dimension to financial security, merging community support with ethical investment practices to drive positive social impact in the Philippines.