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By Henry Uche
The National Insurance Commission (NAICOM) has expressed its readiness to explore the global Takaful insurance market, which is expected to grow to $25 trillion by 2025.
Represented by the Deputy Commissioner, Sabiu Abubakar, NAICOM boss, Sunday Thomas, made this known at a two-day conference with the theme, ‘Leveraging Technology to Build on the Opportunities of Takaful and Non-Interest Finance in Africa’ organised by Noor Takaful Insurance Ltd.
At the event, captains and leaders of industry across Africa explored the transformative potential of technology and how it drives non-interest finance.
Thomas said the global value of Takaful Insurance is more than $2 trillion with a projected upward trajectory of $25 trillion in the next two years.
According to him, many Sharia-compliant fintech companies are popping up in Islamic and non-Islamic countries to lift millions of people and extend financial services to the underserved. “We are always on the lookout for opportunities to boost our insurance industry” he affirmed.
Also speaking, the former Governor of the Central Bank of Nigeria (CBN), Khalifat Muhammad Sanusi 11, who introduced the non-interest banking model during his time in the apex bank, said there is a massive growth of Islamic finance despite the initial doubt.
Former CBN boss said the introduction of digital innovation might conflict with the principles of Takaful Insurance, adding: “As long as the products comply with Sharia, the technology you use is permissible.”
Sanusi maintained that the technology could be blockchain, artificial intelligence (AI) and data analytics, with the potential to deepen ethical insurance penetration.
He noted urged practitioners to see technology as an enabler in advancing the Takaful model and non-interest finance in Africa. He also harped on the need for industry players to collaborate on the best way to improve regulations.
Chairman, Noor Takaful Insurance, Muhtar Bakare, said the decision to organise the conference was borne out of the resolve to deepen understanding and increase awareness about Takaful while resolving the long-standing socio-economic contradictions in Africa. He added that the company has planned to make the conference yearly to establish an ecosystem of cross fertilization and pollution of ideas.
“We shall make this yearly forum for knowledge sharing to boost financial inclusion” he maintained.
