Takaful and the Growth of Nigeria's Insurance Industry
Takaful has the potential to deepen insurance in Nigeria, through the personal life products that are tailor-made for households and MSMEs. Takaful also known as Islamic insurance, is a Risk Sharing avenue for participants who put their funds together as Donation (Tabarru) in order to cover one another against specific risks.
The concept of donation and assisting one another against unforeseen risks and losses is derived from Quran chapter 5 vs 2. In Nigeria, 5 Takaful companies are operating with four full-fledged and one window with 120 products approved by National Insurance Commission, NAICOM.
This edition of Islamic Finance Weekly anchored by Bukola Akinyele-Yisau features Mr. Zubairu Sulaiman, Head, Takaful Unit, National Insurance Commission, NAICOM. He speaks on "Takaful and the Quest to Deepening Insurance Penetration in Nigeria".
According to him, The future of the insurance industry in Nigeria including takaful hinges on embracing innovation and technologies such as AI, Blockchain, Insurtech, Analytics amongst others. As the Millennials and Gen Z's are born into the era of digital technology.