NAICOM to explore $2 trillion global Takaful insurance market

The National Insurance Commission (NAICOM) has expressed its commitment to exploring the global Takaful insurance market, which is expected to grow to $25 trillion in 2025.

This was revealed by the commissioner, Sunday Thomas, who was represented by the Deputy Commissioner, Sabiu Abubakar, at a two-day conference themed, ‘Leveraging Technology to Build on the Opportunities of Takaful and Non-Interest Finance in Africa’ organised by Noor Takaful Insurance Limited.

The event gathered industry leaders across Africa to explore the transformative potential of technology and how it drives non-interest finance.
Speaking at the programme, 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.

Thomas said 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.

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.

According to him, 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 and data analytics, with the potential to deepen ethical insurance penetration.

Sanusi, who was special guest of honour, noted that there is a need for 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 commitment to deepen understanding and increase awareness about Takaful while resolving the long-standing socio-economic contradictions in Africa. He informed the gathering that the company planned to make the conference yearly to create an ecosystem of knowledge sharing.