Pru Life UK, Al Amanah team-up targets inclusion

Pru Life UK, a global life insurance firm, partnered with Al Amanah Islamic Investment Bank of the Philippines (AAIIBP) to spread financial education in Muslim communities.

Through AAIIBP, Pru Life UK can deepen discussions of financial management, especially in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said 8 percent of the population of BARMM have bank accounts.

Eastern Visayas comes second as the most unbanked region in the country.

“The partnership with Pru Life UK on financial education and capacity building is a significant milestone in our efforts to uplift Muslim communities and empower them to become key contributors to the nation’s progress,” AAIIBP chairman and chief executive officer Amilbahar Amilasan Jr. said.

Pru Life UK recently received its license from the Insurance Commission to offer Takaful insurance or Islamic insurance which emphasizes financial sharing for socio-economic needs, such as healthcare and education.

Shariah compliant

This type of insurance complies with Shariah or Islamic laws which prohibit investments in businesses related to alcoholic drinks and gambling, among others.

However, Pru Life UK’s commissioned study revealed many Filipino Muslims cannot access these financial services as “they maintain traditional practices such as keeping their savings at home rather than in banks or formal financial institutions.”

The study said at least 7 million Filipino Muslims worry mostly about healthcare emergencies and financial stability.

To help raise financially wise Filipino Muslims, Pru Life UK last October launched the Adopt-a-Madrasah Program which provides them insights on financial management and services.

Pru Life UK targets to expand the reach of this program and launch financial education sessions in key sites across the country, especially in Mindanao this year.

The insurance firm reported over 450 students and teachers from three community madrasahs or Islamic schools in Bangkal, Davao City benefitted from the program.

“Pru Life UK targets to expand the reach of this program and launch financial education sessions in key sites across the country, especially in Mindanao this year,” the firm said.

AAIIBP is the country’s first Islamic bank authorized to operate as a subsidiary of the state-owned Development Bank of the Philippines in 2008 and serves as the official depository bank of government-owned and controlled corporations, especially those operating in the BARMM.