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22November
Bangsamoro explores 'Takaful' for economic growth
- Nov 22, 2024
- Taher G. Solaiman
- HITS: 196
The event, held at the Pagana Convention Center, this city, saw the participation of representatives from BARMM ministries, offices, and agencies (MOAs), private sectors including financial institutions and business groups, academe, Ulama (religious sector), civil society organizations, and non-profit organizations.
MFBM Minister Ubaida Pacasem emphasized the significance of Takaful, or Islamic insurance, in providing financial security while adhering to Islamic finance principles.
"Takaful will not only protect individual assets but also support the broader prospect of Islamic Finance, contributing to the development of Islamic banking and Islamic capital markets," Pacasem stated.
He further highlighted the potential of Takaful to promote inclusive financial services, nurturing local Micro, Small and Medium Enterprises (MSMEs), supporting the agri-fisheries sector, and providing meaningful support for households, charities, and community organizations.
Deputy Minister Abdullah Cusain stressed the need for collaboration to promote Takaful within BARMM and across the Philippines.
"Takaful is a viable alternative to conventional insurance because it aligns our identity as Muslims and our values as a people," Cusain said.
The summit featured presentations by Takaful experts and consultants, providing insights into the various types of Takaful, its potential applications, and its regulatory framework in the Philippines.
Muhammad Nadzir Ebil, Chairperson of the BARMM Shariah Supervisory Board, defined Takaful as a collective agreement among individuals to manage risks, emphasizing its inclusivity, as even non-Muslims can participate.
Lawyer Salma Angkaya-Kuhutan, an Islamic Finance Consultant, discussed the potential applications of Takaful, highlighting its focus on protection rather than investment growth.
She emphasized key characteristics of Takaful, including its short-term nature, single fund structure, indemnity-based approach, surplus management, and adherence to Shariah principles.
Carlo Garcia, Supervising Insurance Specialist of the Insurance Commission, provided insights into the regulatory framework and the current status of Takaful in the Philippines. He noted that only two Takaful companies are currently registered in the country, highlighting the potential for growth in this sector.
The summit provided a platform for participants to engage in discussions and share their knowledge and perspectives on Takaful. This event underscores the Bangsamoro government's commitment to exploring innovative financial solutions that align with Islamic values and contribute to the region's socioeconomic development.
In a global context, Takaful is experiencing significant growth, with direct contributions reaching $25.8 billion in 2022, reflecting its increasing importance in Islamic Finance. The Bangsamoro Government's initiative to promote Takaful positions the region as a potential leader in this burgeoning sector.
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