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Express Tribune
27-05-2025
- Business
- Express Tribune
Redefining faith and finance: Pakistan's evolving Takaful industry
The Takaful industry in Pakistan has come a long way since its inception in 2006, when the Securities and Exchange Commission of Pakistan (SECP) promulgated Takaful Rules. Azeem Iqbal Pirani, Chief Operation Officer and Executive Director at EFU Life, recalled the history of Takaful in the recent Tribune Podcast held in collaboration with EFU Hemayah Takaful. EFU Life Assurance Ltd. was the first life insurance company to obtain a Takaful Window license under the SECP's regulatory framework For years, a significant portion of Pakistan's population avoided insurance products, viewing them as contrary to Shariah principles. Pirani shared that when he entered the industry, the public hesitated to engage with any form of insurance—life, general, or health. The mission was clear: to create a Shariah-compliant system that aligned with people's values and beliefs. EFU Life's introduction of Takaful aimed to bridge this gap, and while uptake is still growing, meaningful progress has been made. As per last year's report by SECP, Takaful's share was around 12 percent in the total sales of the insurance sector. The share is still modest because of two reasons, one, that people still have doubts about its religious legitimacy, and second, people are not aware of these services as yet. But SECP now has a particular mandate in expanding the user base of Takaful, aiming to take its share to 35 percent from 12 percent by 2028. Host Adeel Azhar, who has been an influential personality in the finance & insurance sector of Pakistan, agreed that lack of awareness is the main stumbling block. He cites the example of insurance in the auto-finance sector, where he said that it is high only due to SBP making it mandatory. He said that it is indeed a double challenge to convince people to take finance on Islamic principles and then also add to Islamic Insurance i.e. Takaful. Dr. Irum Saba, Director of the Center for Excellence in Islamic Finance at IBA Karachi, explained the reasons behind poor concentration of Islamic finance in Pakistan. She noted that our country has a huge population of 250 million, but the commitment of the government and the regulators is not as strong. She compared this to Malaysia, the country with a very large concentration of Islamic finance, maintaining that the government and regulators there are very much committed and awareness is accordingly much more than Pakistan. She said that in Malaysia, students, entrepreneurs, businesses, and every institution is protected by Takaful. Compared to Pakistan, she said state institutions in Malaysia are headed by people who are committed to Islamic finance, including their ministry of finance, securities commission, and central bank. She advocates that such commitment, coupled with awareness, is the key to expansion of the Takaful industry. In particular, she advocates that such awareness be spread at the level of schools, colleges, and even villages. Dr. Irum also cited the examples of other neighboring countries, where she said the financial literacy is much more prevalent than Pakistan. She quotes her experience of seeing street hawkers having QR Code Machines for payments, which she said reflects the good financial acumen of otherwise less educated people. She stressed on educating the younger generation through tools, techniques, and AI. When asked about the milestones EFU Hemayah Takaful has achieved over its 10-year history and its plan forward, Pirani said that EFU Life was the first company which obtained the Window License for its services. He mentioned that EFU not only launched a Takaful product, it also gave it a brand identity. Currently, Takaful contributes to 35 percent of EFU Life's business, which reflects its growth over the decade. One strategy that particularly worked was providing customers the option to convert the existing life insurance products into Shariah-compliant ones. This was an unparalleled offer which not only boosted the company's business but also helped in expanding Takaful penetration in Pakistan. EFU Life then moved to inclusive and digital options, which also helped expand customer base. Thanks to the growing business, the company has distributed a surplus of Rs 800 million among its customers, which now stand at 1.4 million. Responding to a question on the steps taken by academia such as IBA for connecting the academia with the industry, Dr. Irum elaborated that her center regularly conducts training, engages in research, and holds discussions and debates on Islamic finance. She mentioned that specialized training programs to impart solid understanding of Takaful were administered by expert trainers from both national and international institutions. She also stated that the center is doing research on Wakala-Waqf model of Takaful, which is applicable in Pakistan. She said that the training is also offered to companies which are seeking services for their employees from Takaful operators. In another program, the center offers training on Islamic wealth management and planning, where students are educated about how to save and invest, and when it relates to investment, the role of Takaful is also highlighted. The episode served as a compelling reflection on how Pakistan's Takaful industry is transforming. Supported by regulatory mandates, academic research, and evolving consumer awareness, Takaful is no longer a niche offering. As EFU Life and institutions like IBA continue to educate and innovate, the future of Islamic insurance in Pakistan appears increasingly inclusive, accessible, and in sync with the values of the people it aims to serve.
Business Recorder
13-05-2025
- Business
- Business Recorder
Startup Neem enters insurance sector with EFU Life partnership
Embedded finance platform Neem, which has raised over $4 million in seed funding from global and local investors, announced a strategic partnership with EFU Life, marking its entry into the insurance sector. According to a statement released Tuesday, EFU Life's offerings will soon be integrated into Neem Paymenow, a Shariah-compliant earned wage access platform. This will help employees access and pay for Islamic insurance products, like life, health, and accident coverage, directly within the platform where they receive their salaries, the startup said. With Neem's 'Payment Button', EFU Life customers can pay digitally via cards, wallets, bank transfers etc. Payments are auto-matched to policy numbers, reducing manual errors and delays, which speeds up reconciliation and minimises manual effort, the company said. Neem is also helping EFU Life build a white-labeled wallet system. It will allow customers to store funds, top up through various methods, and use those funds for premium payments, policy purchases, and claims disbursements. 'The integration of Neem's payment platform has helped us reimagine how premiums are collected—making the process faster, more secure, and customer-friendly,' said Azeem Pirani, COO at EFU Life. 'By digitizing this critical touchpoint, we're improving efficiency for our teams and convenience for our policyholders, while laying the foundation for a more inclusive insurance experience,' he added. Pakistan's Neem secures $4mn credit facility from DNI Group Why insurance? Speaking to Business Recorder, Nadeem Shaikh, co-founder at Neem, explained that 'insurance stood out as a critical sector where both access and digital infrastructure are limited.' 'It's also a key pillar of financial well-being, yet remains largely underpenetrated. By entering this space, we saw a clear opportunity to simplify access to insurance and digitise the entire value chain—from premium collection to claims—through embedded payments and wallet infrastructure.' 'This not only helps insurers go live faster but also improves operational efficiency and opens up new revenue opportunities, while making insurance more accessible and seamless for their customers, millions of Pakistani people,' he added. In its statement, Neem said that despite a growing need for financial protection in Pakistan, the sector remains underdeveloped, with penetration still below 1% of GDP, far behind regional standards. This is partly due to outdated, cash-heavy processes and Neem is solving these challenges by directly embedding a robust digital payment and wallet infrastructure into the insurance journey. Neem plans to work with other insurers in the future to embed digital payments and wallets into their offerings. Shaikh also told Business Recorder that Neem is sector-agnostic, and focuses on embedding financial products where they're most needed. Beyond insurance, Neem is already active across key sectors including healthcare (Sehat Kahani), logistics (Smartlane, TCS), mobility (ezBike), agriculture (Bakhabar Kissan, Farm2Home), education (Edkasa), retail (Sana Safinaz, Union Fabrics), lifestyle (Davaam, Padelverse) and e-commerce ( Fenrir, EcommDeals). 'Going forward, we'll deepen our presence in these verticals through strategic partnerships and tailored financial solutions,' he said.
Express Tribune
22-02-2025
- Business
- Express Tribune
Express Media Group partners with EFU Life
Listen to article The Express Media Group has joined hands with one of the country's leading private insurance companies, EFU Life, to promote awareness about its "Hemayah EFU Family Takaful" product. A memorandum of understanding (MoU) was signed between the Express Media Group and EFU Life at the EFU Life headquarters. The MoU was inked by Azeem Iqbal Pirani, Chief Operations Officer and Executive Director of EFU Life, and Azfar M Nizami, Executive Director Sales and Marketing of the Express Media Group. On the occasion, Aman Hussain, Head of Marketing EFU Life, Saqib Basharat, Media Lead at EFU, along with members of EFU's digital team, were present. Kamran Ahmed, Associate Director Marketing, Romina Ali, General Manager Marketing at the Express Media Group and Haris Ali Khan, Manager Digital Sales at Express Digital also attended the event. Azeem Iqbal Pirani emphasised the importance of digital platforms for raising awareness about the protection provided by insurance. He stated that through collaboration with the Express Media Group, EFU Life would be able to spread awareness about Hemayah EFU Family Takaful and other insurance services. He mentioned that EFU Life is expanding its Hemayah Family Takaful programme nationwide and promoting it not just as a standalone product but as a comprehensive business offering. Azfar M Nizami, Executive Director of the Express Media Group, highlighted the significance of the group's vast platform, which reaches over 40 million active users. He emphasised the role of podcasts and digital communications in raising awareness of various topics, including insurance. This collaboration with EFU Life is an extension of the Express Media Group's ongoing efforts to conduct awareness campaigns via podcasts on diverse subjects, benefiting from their expertise in the media industry and the extensive reach of digital platforms.
Express Tribune
21-02-2025
- Business
- Express Tribune
Express Media Group partners with EFU Life to promote awareness about HEMAYAH EFU Family Takaful
Listen to article Express Media Group has joined hands with one of the country's leading private insurance companies, EFU Life, to promote awareness about its "HEMAYAH EFU Family Takaful" product. A Memorandum of Understanding (MoU) was signed between Express Media Group and EFU Life at EFU Life's headquarters. The MoU was signed by Azeem Iqbal Pirani, Chief Operations Officer & Executive Director of EFU Life, and Azfar M. Nizami, Executive Director of Sales and Marketing at Express Media Group. On this occasion, EFU Life's Head of Marketing, Aman Hussain, Saqib Basharat, Media Lead at EFU, along with members of EFU's digital team, were also present. Kamran Ahmed, Associate Director of Marketing, Romina Ali, General Manager of Marketing at Express Media Group, and Haris Ali Khan, Manager of Digital Sales at Express Digital Pvt. Ltd., were also present at the event. Azeem Iqbal Pirani emphasized the importance of digital platforms for raising awareness about the protection provided by insurance. He stated that through collaboration with Express Media Group, EFU Life will be able to spread awareness about "HEMAYAH EFU Family Takaful" and other insurance services. He mentioned that EFU Life is expanding its HEMAYAH EFU Family Takaful program nationwide and promoting it not just as a standalone product, but as a comprehensive business offering. Azfar M. Nizami, Executive Director of Express Media Group, highlighted the significance of the group's vast platform, which reaches over 40 million active users. He emphasized the role of podcasts and digital communications in raising awareness on various topics, including insurance. This collaboration with EFU Life is an extension of Express Media Group's ongoing efforts to conduct awareness campaigns via podcasts on diverse subjects, benefiting from their expertise in the media industry and the extensive reach of digital platforms. As part of this collaboration, digital media users will be able to access podcasts on Express Media Group's digital platforms, gaining fundamental insights into the importance of insurance, particularly the features of EFU Life's "HEMAYAH EFU Family Takaful."
