THE National Insurance Commission (NAICOM) has said that it is exploring the global Takaful insurance market, which is expected to hit $25 trillion in 2025 to deepen the country’s insurance market penetration.
This was disclosed by the Commissioner for Insurance (CFI), Mr. Sunday Thomas who was represented by the Deputy Commissioner, Sabiu Abubakar 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 Limited.
The event attracted industry leaders across Africa who explored the transformative potential of technology and how it drives non-interest finance.
Speaking during the event, Mr. Thomas 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 said 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.
In his speech, the former Governor of the Central Bank of Nigeria (CBN), 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.
He explained 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.”
The former Emir noted that the technology could be blockchain, artificial intelligence, and data analytics, with the potential to deepen ethical insurance penetration.
According to Sanusi, who was the special guest of honour, there is a need for practitioners to see technology as an enabler in advancing the Takaful model and non-interest finance in Africa and called on the industry players to collaborate on the best way to improve regulations.
Chairman, of Noor Takaful Insurance, Muhtar Bakare, said the decision to organise the conference was borne out of the commitment to deepen understanding and raise awareness about Takaful while resolving the long-standing socio-economic contradictions in Africa, telling the gathering that the company is planning to make the conference yearly in order to create an ecosystem of knowledge sharing.
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