By Cynthia Ezekwe.
The National Insurance Commission (NAICOM) said that it is navigating the global Takaful insurance market, which is projected to hit $25 trillion in 2025 to deepen Nigeria’s insurance market penetration.
Sunday Thomas, the commissioner for insurance, stated this recently at a two-day conference, organised by Noor Takaful Insurance Limited, tagged ‘Leveraging Technology to Build on the Opportunities of Takaful and Non-Interest Finance in Africa’.
Takaful is a type of Islamic insurance wherein members contribute money into a pool system to guarantee each other against loss or damage. Takaful-branded insurance is based on sharia or Islamic religious law, which explains how individuals are responsible to cooperate and protect one another. Takaful policies cover health, life, and general insurance needs.
Thomas, who was represented at the event by Sabiu Abubakar, the deputy commissioner for insurance, pointed out that the global value of Takaful Insurance is more than $2 trillion with a projected upward trajectory of $25 trillion in the next two years. He noted that many Sharia-compliant fintech companies are coming up in Islamic and non-Islamic countries to lift millions of people and extend financial services to the underserved.
Also speaking at the event, Muhammad Sanusi, the former governor of the Central Bank of Nigeria (CBN), who introduced the non-interest banking model during his regime at the apex bank, said there is a massive growth of Islamic finance despite the initial doubt.
Sanusi noted that 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 stated technology such as blockchain, artificial intelligence, and data analytics, have the potential to deepen ethical insurance penetration, stressing that there is a need for practitioners to see technology as an enabler in advancing the Takaful model and non-interest finance in Africa.