Experts Canvass Takaful Insurance For Financial Inclusion

Experts, who attended the 1st African Takaful and Non-Interest Finance Conference sponsored by Noor Takaful Insurance Ltd, have canvassed for adoption of Takaful Insurance as a platform for financial inclusion.

The event had gathered industry leaders, experts, and stakeholders across Africa to discuss and explore the transformative potential of technology as it drives Takaful and non-interest finance in Africa.

The two-day conference with the Theme: ‘Leveraging Technology to Build on the Opportunities of Takaful & Non-Interest Finance in Africa,’ held in Lagos on, August 1 & 2nd , 2022 provided a platform for dialogue and knowledge exchange, fostering a deeper understanding of Takaful and non-interest finance as ethical and inclusive alternatives to conventional financial systems.

Delivering his welcome remarks at the occasion, the chairman, Noor Takaful Insurance Limited, Muhtar Bakare explained that, the decision to organize the 1st conference was borne out of the commitment to deepen understanding and increase awareness about Takaful while also resolving the long-standing socio-economic contradictions on the African continent, notably, the issue of mass poverty in Africa.

He also informed the gathering that the company planned to make the conference annual, noting that, the conference is intended to create an ecosystem of knowledge sharing while analysing regulatory frameworks and policy recommendations to support the growth of Takaful and Islamic finance initiatives in Africa.

Speaking at the event, special guest of honour, His Royal Highness, Khalifa Muhammad Sanusi II expressed great delight at the steady growth of Islamic finance in Nigeria.

Sanusi noted that, there is a need for practitioners to see technology as a big enabler in advancing the Takaful model and non-interest finance in Africa, while harping on the need for industry players to collaborate on the best way possible to improve regulations.

In his keynote address, deputy commissioner for Insurance, Sabiu Abubakar, who represented the Commissioner for Insurance, National Insurance Commission (NAICOM), stated that, the commission is trying its best to support operators in promoting the growth of Takaful in Nigeria with market-friendly regulations.

Abubakar stressed the need for industry players to embrace technology in the quest to expand the markets and enhance the efficiency of the Takaful model.

In his remarks, the guest speaker and former commissioner, NAICOM, Mohammed Kari (Wazirin Bauchi), noted that, though the penetration of non-interest finance is still relatively low in Africa, there is a huge market potential that needs to be tapped.

Kari stated that, leveraging advanced technology such as chat GPT, blockchain has the potential to enhance transparency, reduce fraud and streamline processes in Takaful and Islamic finance operations.

He advised operators to work together in restructuring the regulatory frameworks of the industry in Africa to ensure that it complies with the principles of Shariah as this would go a long way to creating a conducive environment for the growth of the sector.

On his part, vice-chairman, Noor Takaful, Aminu Tukur stated that Takaful has, without a doubt, become the best alternative form of insurance in Africa given the way it has gained acceptance over the years.

Tukur, who gave more insights on the benefits of Takaful, explained there is a need for stronger commitment on the part of stakeholders to deepen penetration.

Takaful, which operates in compliance with Sharia principles, is built on equity and fairness to foster prosperity.

The two-day event featured several panel sessions that included industry experts from Nigeria and other countries such as Egypt, Kenya, Bahrain, USA among others.