Over a year after the Pakistani regulator released draft guidelines in support of digital-only insurers, an insurtech company’s Takaful window has partnered with a local bank to expand its reach, taking a step forward in the sector’s development.
TPL Insurance – Window Takaful Operations signed an MoU with Faysal Bank to jointly offer Shariah compliant financial solutions to both their customers.
The collaboration with Faysal Bank is expected to afford the insurer a larger market for its Takaful offerings, and the bank a bigger audience for its Islamic financing products.
“As Pakistan’s leading insurtech, TPL Insurance takes pride in bringing disruption to the digital space, creating new market(s) and product developments in the industry and new offerings for customers. Our efforts are singularly focused on making Takaful easy and accessible for all,” shared Muhammad Aminuddin, CEO of the company.
“Creating a strategic partnership like this has paramount importance for both entities. This will allow Faysal Bank to promote its Shariah compliant consumer products to a much larger audience and create further awareness about Shariah compliant financing,” noted Aneeq Malik, the senior executive vice president–group head consumer finance and payment services of the bank which is currently in the process of converting into a fully-fledged Islamic bank.
The Securities and Exchange Commission of Pakistan (SECP) has, in recent years, stepped up its efforts to digitize the insurance and Takaful sector. The draft guidelines it released in 2021 outlined requirements including those relating to paid-up capital, governance, product development and digital-only operations.
The SECP’s regulatory sandbox, which is now in its third cohort program, also monitors feedback from its participants, including insurtech and Takatech start-ups, to help the regulator design its policies and frameworks to better cater to Islamic financial service providers.