We’ll Integrate Digital Tech-driven Inclusion — Abdulrrahman

Chairman of Jaiz Takaful Insurance Ltd, Hajiya Zainab Abdurrahman, has stressed the importance of driving digitalisation and technological integration to promote business growth and support the Nigerian economy.

At the 2023 Surplus Sharing Event held yesterday in Abuja, Abdulrrahman stated that the organisation will continue to optimise its business strategies and operations by further integrating digital technologies.

“We are pursuing a digital agenda by engaging stakeholders more effectively through e-channels and enhancing our customers’ purchase journey. Our operations will be more digitally customer-centric,” she said.

This year’s event marks the fourth edition since the company began operations in 2017. Hassan expressed gratitude to the stakeholders, highlighting the opportunity to strengthen partnerships, exchange valuable insights, and explore potential growth opportunities.

Reflecting on the company’s performance, she noted that during the 2022 Surplus Sharing Event, Jaiz Takaful committed to increasing its market share within targeted segments by leveraging its core family and general operations competencies.

In 2023, the company declared a surplus of ₦8.009 million, representing a significant decrease from the ₦230.806 million distributed in 2022 — a drop of approximately 48.9%.

“We understand that this decline may raise concerns among stakeholders, and we wish to provide some context and explanation,” she stated.

She explained that the highly competitive nature of Nigeria’s Takaful industry, combined with macroeconomic challenges such as inflation and currency fluctuations, negatively impacted investment returns and overall financial performance.

“Notably, the unprecedented number of Family Takaful claims paid in 2023 significantly depleted the Risk Fund, resulting in no surplus under the Family Takaful classes,” Hassan added.

Despite these challenges, she reaffirmed the company’s commitment to its mission of delivering Shariah-compliant insurance solutions, while continuing to enhance operational efficiency, improve investment returns, and strengthen the value proposition for participants.

“Our goal is to deliver sustainable growth and long-term value to our stakeholders,” she said.

Abdulrrahman further highlighted the core benefits of the Takaful model, stating: “Takaful fosters cooperation and shared responsibility among participants. It is inclusive and benefits all participants, regardless of background or beliefs.

“Surplus sharing—guided by Shariah principles—ensures equitable distribution of underwriting profits and investment income between the operator and participants at the end of each policy period.”