Malaysian firm ETIQA plans to bring Islamic insurance coverage in the Philippines. The takaful system will allegedly be offered under Islamic banking institutions provided these can gain a wider audience in the country.
ETIQA is the insurance department of Maybank. Takaful is a type of system which allows members to contribute a certain amount within a common source of funding, says Business World Online.
According to Business World Online, chief strategy officer of Etiqa and Takaful in Malaysia Chris Eng Poh Yoon said they are “taking a look at the takaful market here in the Philippines… We don’t have a takaful agency force right now in the Philippines but what we can easily grow in this business is if the regulations are in place and if there is an Islamic bank that has been set up for distribution access to the Muslim population. Then we can easily just plug in our system to that bank.”
Should the company become successful in permeating the Philippine insurance landscape, Etiqa is slated to roll out low-risk packages aimed to cater to a wider audience. Some of the packages they are eyeing include fire, accident, and personnel policies, reports Business Inquirer.
Although the company maintains a positive outlook on its probable entrance to the market, Insurance Commissioner Dennis B. Funa said the Philippine market may not be ready to welcome a new contender. Apart from revising the current Insurance Code observed in the country, new laws will have to take place and additional training on takaful systems will have to take place.
Currently, the only authorized lender recognized to provide Islamic banking services to the Philippines is the Al Amanah Islamic Bank. However, Eng said that the bank’s reach is still relatively small.
To be able to distribute their products and services in the country, Etiqa needs to partner with an established institution that already has access to a wider audience.