25 years of democracy in Nigeria (May 29,1999 – 2024) – CEOs whose companies are making real impact in Nigerian economy (Part 1)
Though the ‘Takaful’ concept and operations in Nigeria’s financial services industry is still nascent, it is widely catching on because of the strong values which it operators espouse and adhere strictly to. These values include transparency, honesty, fidelity, mutual compassion and support. Takaful derives from Arabic language which implies “guaranteeing each other” or mutual cooperation and solidarity, sharing of risks as well as helping one another amid calamity. In a Takaful operation, the risks of the business are shared by all participants or contributors, while in the traditional or conventional insurance the risks from the insured, including calamities and losses to the insurance company. Takaful operators or companies do not own the takaful funds contributed by participants, the money or premium belong to all of them. A takaful company only manages it on their behalf for a fee and share of the profit from the fund after conclusion of business. All eligible customers of a takaful company who did not make a claim are entitled to a share of the fund, payable after the certificated period. Essentially, this translates to all contributors either enjoying the benefits of insurance through claims made, and if no claims are made, they are entitled to a share of the surplus or profit from the fund.
Beyond the novelty of risk and profit sharing by all, takaful -based companies like Noor Takaful Insurance Limited do not guarantee or invest in businesses like alcohol, gambling, prostitution, even as they forbid exploitation such as usury or “riba”. Takaful companies are ethical investors, and because they operate by their core values, they are gaining wider acceptance and buy -in all over the world. Indeed, more than 500 takaful companies now operate in 72 nations across the world. And in Nigeria, the National Insurance Commission, NAICOM has licensed 6 operators,5 of which are already doing business. People all over the world are getting dissatisfied by unethical, greed- driven practices of many traditional banks and insurance companies. So, they are turning to innovative, ethics -driven companies like Noor Takaful Insurance, which give them peace of mind.
But there is still a lot of work to be done, especially in Nigeria for takaful operations to be well understood, and gain more patronage. At a workshop/symposium, Mr. Zubairu Sulaiman, Head of Takaful Unit at NAICOM spoke about the huge potential of takaful in deepening insurance business in Nigeria, even as he also urged takaful companies to engage in more sensitization/awareness exercises so as to let Nigerians know their services and patronize them. Sulaiman particularly emphasized that takaful companies should introduce more innovative products/services for households and micro, small and medium enterprises, MSMEs He also advised them to move closer to their prospective customer so as to know which new products to design for them. Sulaiman made these observations while speaking on “Takaful and the Growth of Nigerian Insurance Industry”.
Noor Takaful Insurance is heeding Sulaiman’s advice. The company has come up with innovative products and services based on the needs of its ever-increasing customers. Though Noor Takaful Insurance may be young in age (established in 2016),it has a well- respected chief executive officer, Mr.Rilwan Sunmonu,who is a towering figure in Nigerian insurance industry. And because of his integrity, experience and good reputation , doors of business are opening up for Noor. People don’t do business with others just because they open office/shop, they do business with new companies based on the good reputation of the management and staff . Competence, experience and integrity abound among Noor Takaful Insurance staff. These are personal values Sunmonu lives by too.
Rilwan Sunmonu, Managing Director/CEO, Noor Takaful
Rilwan Sunmonu is a Chartered Insurer with over two decades of extensive experience in the Nigerian insurance market. He holds a graduate degree in Insurance, complemented by a Master’s in Managerial Psychology from the University of Ibadan, and a Post Graduate Diploma in Islamic Finance from Nungu Business School, Lagos, which he successfully completed in 2020.
Sunmonu embarked on his insurance journey at Allison Insurance Brokers in January 1999, later transitioning to pivotal roles at Hallmark Assurance Plc (now Consolidated Hallmark) and Royal Exchange PLC. Notably, during his tenure at Royal Exchange, he ascended through various positions, ultimately assuming the esteemed role of Head of Manufacturing and Conglomerate.
His tenure at Royal Exchange PLC spanned several years of dedicated service.
In March 2019, Sunmonu joined Noor Takaful Insurance Limited, bringing with him a wealth of industry knowledge and expertise. He is also an Associate of the Chartered Institute of Directors, a testament to his commitment to professional development.
Renowned for his unwavering integrity, exceptional professionalism, and compassionate leadership style, Sunmonu epitomizes the core values of Noor Takaful Insurance. His strategic vision and astute leadership have been instrumental in driving the company’s mission to provide comprehensive and affordable insurance services to individuals and families alike.
Throughout his illustrious career, Sunmonu has actively participated in numerous seminars, conferences, and courses both locally and internationally, further enhancing his industry knowledge and expertise.
Under his adept guidance, Noor Takaful Insurance continues to chart a path toward a promising future, poised to achieve new heights of success and excellence in the insurance industry.
Noor Takaful: Pioneering Sharia-Compliant Insurance Solutions for Nigerians
Noor Takaful was duly licensed by NAICOM in April 2016 as the first full-fledged composite Takaful operator in Nigeria with a 100% indigenous Nigerian shareholding.
What Sets Noor Takaful Apart?
Unlike conventional insurance, Takaful operates on the principle of mutual cooperation and risk-sharing. Participants contribute to a shared pool, and those experiencing covered losses receive financial assistance from this pool. This fosters a sense of community and shared responsibility, adhering to the core tenets of Islamic finance.
As a composite Takaful operator, we offer a diverse range of General Takaful (protecting assets and liabilities) and Family Takaful (protecting individuals and groups) products. These cater to the financial security needs of all Nigerians.
Noor Takaful Insurance Limited has played and will continue in its pioneering and leading role in unlocking Ethical-compliant insurance potential for Nigeria. Consequently, the Company has made several landmark achievements within its vision and mission.
How does a Takaful operator differ from an Insurance company?
Insurance is a Risk Transfer mechanism from the insured to the insurance company, for a price called premium. The insurance company will compensate the insured in the event of covered losses or damages sustained by him.
Takaful is a Risk Sharing Mechanism among the participants through the concept of donation. It is fundamentally different from conventional insurance whereby the Takaful operator does not own the takaful fund (the risk fund). The contributions paid by the participants as a risk-sharing mechanism to the takaful fund belong to them (to cover the risks).
The Takaful operator only manages the fund for a fee and a share of the surplus, if any. For this purpose, all eligible participants who have not made a claim will be entitled to a share of the profit of the Takaful fund (if any), payable after the end of the policy period. Essentially, this means that all the participants of Takaful will either enjoy the benefits of insurance through claims made; and if no claims are made, they are entitled to a share of surplus.
In conventional insurance, whatever profit of the insurance fund belongs entirely to the insurance company.
Takaful Insurance Is for Everyone
As an ethical type of insurance, it is open to all and sundry and since it is primarily based on the concept of mutual cooperation, it is beneficial to all members of the society without any form of religious, racial, or ethnic discrimination.
Noor Takaful aspires to provide a better alternative insurance for all Nigerians where all the participants as well as Noor Takaful mutually benefit from the various innovative and ethical products and services on offer.
Experience the Peace of Mind You Deserve
Noor Takaful is more than just an insurance company. Since their inception in 2016, they have been at the forefront of Sharia-compliant insurance in Nigeria, earning a reputation for:
* Prompt and Efficient Claims Resolution: Noor Takaful understands that experiencing a loss can be incredibly stressful. That’s why they prioritize swift yet thorough claims processing, consistently ranking among the fastest in the industry. Renowned for their efficient claims resolution, Noor Takaful ensures participants receive the financial support they deserve promptly and efficiently, minimizing the burden during difficult times. In 2023 alone, Noor Takaful facilitated over N2 Billion in claims payouts, a testament to their commitment to supporting their participants.
* Mutuality and Shared Benefits: Noor Takaful prioritizes mutuality, a core principle of Takaful that emphasizes shared risk and reward. Participants who haven’t made claims benefit directly from this principle through the consistent distribution of surplus funds. Noor Takaful’s unwavering commitment to mutuality fosters a strong sense of trust and shared prosperity within the communities they serve. This dedication is evident in their consistent surplus payouts since inception, with the most recent distribution amounting to N208,496,800.
* Industry Leadership: Noor Takaful has established itself as a thought leader in the Nigerian ethical insurance landscape. Their commitment to industry progress was exemplified by hosting the inaugural African Takaful & Non-Interest Finance Conference (ATNIF) in 2023. This conference fostered collaboration and innovation, driving positive change within the ethical insurance sector.
The Chairman, Noor Takaful Insurance Limited, Mr Muhtar Bakare, noted that the company maintained a strong financial position despite the challenges posed by the global economic dynamics.
He explained that the rise in gross contribution recorded by the company is largely a result of the significant contribution of the Family Takaful business including its investment income, and growth in other income, which helped in ensuring improved profitability.
He noted that the company would continue to take bold decisions or measures that will ensure that it remains on the path of progress regardless of the difficult and challenging business environment.
“As a business, we will continue to make business decisions that would ensure returns on investment taking into cognizance the difficult macro-economic and political environment. Going forward, investment in technology to deepen Takaful penetration shall be core to our business operations. We are equally determined to take actions that would serve the best interest of our shareholders,” he said.
Noor Takaful’s surplus distribution in 2023 highlights several key points:
* Profitability: The company’s ability to generate surplus demonstrates its financial stability and effective risk management practices.
* Commitment to Takaful Principles: Distributing surplus reinforces the core concept of Takaful, where policyholders share in the profits generated by the Takaful pool.
* Industry Leadership: Noor Takaful’s consistent surplus distribution since 2017 positions them as a leader in offering practical benefits to participants within the Nigerian Takaful industry.
The CEO, Rilwan Sunmonu stated that the distribution of surplus to participants is in line with the true spirit of the Takaful concepts. He stressed that the payment of surplus by the company is a clear demonstration of its commitment to offering Sharia-compliant solutions to participants while reinforcing Takaful as the best alternative insurance. He maintained that Noor Takaful was the first Takaful operator to declare profit and remained the only one to distribute surplus yearly since it started operations in 2017.
While assuring Nigerians of the company’s commitment to transparency, Sunmonu expressed profound appreciation to the regulator, National Insurance Commission (NAICOM), for providing the much-needed enabling environment, which has assisted a great deal in deepening the penetration of Islamic finance among Nigerians.
Building a Brighter Future for Participants:
Noor Takaful is constantly innovating to enhance the insurance experience for its participants. Here’s a glimpse into their future plans:
Enhanced Accessibility: A user-friendly mobile app launches in Q3 2024, empowering participants with 24/7 access to policy management, claims processing, and communication channels. This allows for easier management of insurance needs from anywhere, anytime.
Commitment to Shared Prosperity: Beyond surplus distribution, Noor Takaful will announce its surplus and host a dedicated event at the upcoming African Takaful conference in August 2024. This further solidifies their dedication to returning value to participants and fostering shared prosperity.
Expanding Reach: Leveraging their newly acquired HMO license, Noor Takaful will soon begin operations, offering a comprehensive approach to financial well-being. This holistic solution safeguards both the financial and health security of participants.
Bridging the Gap: Believing that insurance shouldn’t be a privilege, Noor Takaful champions an Insurance Inclusion campaign. This initiative aims to break down barriers and ensure all Nigerians have access to affordable and ethical insurance solutions, empowering them to secure their financial future.
Noor Takaful prioritizes both efficiency and exceptional service delivery. This commitment translates into leveraging cutting-edge technology throughout their business operations, processes, and distribution channels. By embracing technological advancements, Noor Takaful empowers participants with a streamlined and user-friendly experience, aligning with global best practices in the Insurance industry.
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