Two Takaful companies already licensed in Nigeria by the National Insurance Commission (NAICOM) yet to impact the market, though still new, are expected to help drive penetration.
The two firms are expected to drive sensitisation and make potential customers appreciate the difference between it and the conventional insurance providers.
Jaiz Takaful during its launch expressed readiness to commence Islamic ‘Takaful’ Insurance in Kaduna, Kano, and Lagos states, with head office in Abuja. This was disclosed by the Chairman, Jaiz Takaful Insurance Plc, Umaru Abdul Mutallab.
Mutallab, who also doubles as chairman, Jaiz Bank Plc explained that the insurance products give equal opportunity for customers to be owners of the company.
He said: “The name Islamic notwithstanding, it is for all Nigerians, provided they adhere to the principle of Sharia, urging individuals, groups and business people to take advantage of this rare opportunity.
The National Insurance Commission (NAICOM) says it is planning to license more Takaful Insurance companies. The Commission, which has initially licensed two Takaful Companies, said this is major expansion and penetration strategy under its Market Development and Restructuring Initiative (MDRI), targeted at reaching the uninsured population as well as those who avoid conventional insurance as result of their religious belief.
Mohammed Kari, commissioner for Insurance/CEO of NAICOM had as it is presently processing applications submitted by some investors.
Kari said the Commission introduced Takaful and Microinsurance products in the Country as an attempt to reach the segment of the market that is either hitherto reached or not comfortable with the conventional insurance products, stressing that so far, two wholly Takaful companies have been licensed to operate by the Commission while the processing of other applications is on-going.
Kari urged the people of Kano to embrace Takaful for their protection against risks, adding that Takaful is both ethical financing and cooperative risk protection methods that are superior alternatives, because they reinvigorate human capital, human solidarity, emphasize dignity, community self-help and economic self-development, generating manifold benefits which appeal not only to Muslims but all.
“The Commission is elated at this positive development which is a bold step towards the growth and development of the Takaful market in Nigeria.
He noted that the development of Takaful operations in Nigeria could not have been achieved without the provision of an enabling framework for its takeoff, stressing that the Commission in collaboration with development partners such as Enhancing Financial Innovation & Access (Efina) and GIZ developed and released the Takaful Insurance Guidelines to enable smooth operation.
The Commission in March 2015 inaugurated the Takaful Advisory Council of Experts (ACE) saddled with the responsibility of review, endorsement of policies and guidelines related to the principles underpinning Takaful insurance operation. The ACE is made up of eminent scholars with deep knowledge of Islam and Sharia,” he said
