Noor Takaful Insurance Limited, a composite Takaful insurance firm, celebrated a significant milestone by distributing N404.19 million in surplus to over 1,000 participants who did not file claims during the 2023 financial year. This event, held in Lagos, underscored the company’s commitment to the principles of Takaful, an ethical and inclusive insurance model based on shared responsibility and mutual benefit. Major beneficiaries included Lotus Bank, ARM Group, Trustlub Resources Limited, MG Vowgas Ltd, and Alternative Bank, among other corporations and individuals. This surplus distribution represents a substantial return for participants, highlighting the financial viability and attractiveness of the Takaful model.
The National Insurance Commission (NAICOM), represented by Dr. Julius Odidi, praised the event as a testament to the resilience and ethical foundation of Nigeria’s burgeoning Takaful industry. Odidi emphasized the core principles of Takaful – trust, fairness, and shared prosperity – and their alignment with the broader goals of the Nigerian insurance sector. He highlighted Takaful’s ability to provide financial security, promote fairness, and instill confidence in the future. NAICOM envisions increased collaboration between conventional insurers and Takaful operators to broaden insurance penetration and position Nigeria as a leader in ethical and inclusive finance. The commission underscored the importance of trust, integrity, and sound risk management for the continued growth and success of the insurance industry as a whole.
Ibukun Awosika, founder of The Chair Centre Group, delivered a keynote address advocating for increased awareness of the Takaful model. She highlighted the equitable nature of Takaful, emphasizing its reward system for all participants. Awosika challenged Noor Takaful to intensify its public education efforts, emphasizing the need to portray Takaful as more than just another insurance company or one solely tied to religious affiliation. She believes the Takaful model has immense potential for growth in Nigeria, given its broad appeal and ability to resonate with a diverse population. Awosika expressed confidence that Takaful can contribute to a positive shift in the value systems of both corporations and society.
Shuaibu Ahmed, Chairman of Noor Takaful Insurance Limited, highlighted the company’s achievement of distributing N1 billion in surplus since its inception, including the N400 million distributed in 2023. He emphasized that this distribution is not just a financial milestone but a testament to the effectiveness and viability of the Takaful model. Ahmed underscored the principles of cooperation and shared prosperity inherent in Takaful, differentiating it from traditional insurance models that primarily focus on risk transfer. He reiterated that the Takaful model fosters a win-win partnership where both protection and financial returns are shared among participants.
Aminu Tukur, Vice Chairman of Noor Takaful Insurance Limited, reinforced the mutually beneficial nature of the Takaful model, revealing that the company has paid over N11 billion in claims since its inception in 2017. He affirmed the company’s unwavering commitment to ensuring participants receive their due benefits, either through claim settlements in times of need or through surplus distributions. This consistent payout of claims and surplus further solidifies the trustworthiness and reliability of Noor Takaful within the Nigerian insurance landscape.
The surplus distribution by Noor Takaful represents a significant step forward for the Takaful insurance model in Nigeria. It demonstrates not only the financial viability of this ethical and inclusive approach but also its potential to reshape the insurance landscape by prioritizing shared prosperity and mutual benefit. The event, coupled with the endorsements from NAICOM and prominent business leaders, underscores the growing momentum of Takaful and its promise to provide a more equitable and inclusive alternative within the Nigerian insurance sector. The focus on transparency, accountability, and participant engagement positions Takaful as a compelling option for individuals and organizations seeking both financial security and alignment with ethical principles.
