By Tunde Oso
Noor Takaful Insurance Limited, the pioneer composite Takaful insurance firm in Nigeria, has distributed a total of N109,846,000.00 as surplus to participants (policyholders) who did not make claims on their insurance during the 2020 financial year.
This surplus amount was announced on Tuesday, June 21, 2022, during the Surplus Distribution event held at the Radisson Blu Hotel, Ikeja, Lagos, and well attended by the participant (policyholders), Insurance Industry stakeholders, Brokers, Agents as well as the media.
The surplus payment, which comes as a result of the Win-Win insurance model operated by Noor Takaful – an indigenous insurance company licensed by the National Insurance Commission in 2016, thrives on the pool of funds provided by the participants.
Speaking during the event, the Chairman, Noor Takaful Insurance Limited, Muhtar Bakare, explained that out of the total sum of N109,846,000.00, the General Takaful participants received the sum of N74,121,000.00 while Family Takaful participants got N35,725,000.00.
Bakare described the distribution as an affirmation of the efficacy of offering modern financial services to Nigerians who were previously excluded from the formal economy, stating that this would help them achieve reasonable economic stability in their lives and businesses.
Bakare assured the participants that the company remains committed to proactively taking all the necessary steps, including raising adequate capital, prudent underwriting and putting in appropriate covenants required to cover their risks.
“We have all the resources we need and the corporate governance structure to ensure that we continue to meet all our obligations as they fall due. It is pertinent to note that in 2021, we paid over N1.9 billion in claims, with a Claims Ratio of 22% — one of the best, if not the best, in the entire insurance industry”, he said.
He then commended the regulator, NAICOM, for providing the right kind of oversight required to deepen, grow, and sustain the industry stating that their diligent approval processes, especially their insistence on prudence, probity, and best practice, have continued to help the company
.Also speaking, the Vice-Chairman, Noor Takaful Insurance Limited, Aminu Tukur, stated that the surplus distribution comes as the redemption of its pledge to policyholders noting that Takaful insurance has become highly receptive among Nigerians over the last few years.
Tukur assured stakeholders that the company would continue to provide innovation and leadership in the Takaful Insurance industry while maintaining the highest ethical and professional standards.
In her remarks, the Managing Director, Lotus Capital Limited, Hajara Adeola, stated that Takaful insurance, a non-interest finance, remains the best alternative insurance for the generality of Nigerians as it helps to promote financial inclusion.
“The tenets of non-interest finance should attract anyone and should not offend anyone. It means being fair, avoiding ambiguity in the contract, avoiding gambling and many other businesses that are considered harmful to the society”, Adeola said.
She commended Noor Takaful for their diligence in deepening the penetration of insurance and non-interest finance in Nigeria.
“Non-interest finance such as Takaful insurance is a positive force spreading across the globe, empowering people, communities and building cities. It is a financial model that is simple, elegant, and emphasizes justice, fairness, and transparency,” she added.
In his goodwill message, the Senior Pastor, The Covenant Nation, Poju Oyemade, commended the management of Noor Takaful Insurance Limited for keeping to their promises by giving out surplus payments to all participants.
“What I heard here today is something I have not heard anywhere or in any organization regarding insurance. It also signifies that this organization will last a very long time. What kills many organizations is the inability to listen to feedback. So, when you have an organization with good listening and deep consideration for the people, you are bound to have a compassionate side to their business approach. I want to congratulate the organization and look forward to a more fruitful business endeavor,” Oyemade said.
The event was attended by stakeholders, including regulators and relevant professional bodies such as NIA, CIIN and CIFM.
Participants, including individuals, private and public organizations, banks, and higher institutions of learning, received this surplus payment. Some of the customers who received surplus distribution include Lotus Capital Limited, Jaiz Bank Plc, Sterling Bank Plc, Vanguard Pharmacy ltd, Ansar-Ud-Deen Society of Nigeria, Federal Polytechnic Ilaro, Inverness Wealth Management, Global Synergy Limited, and Crescent Schools.
Noor Takaful Insurance Ltd., a takaful insurance firm, was established and duly licensed by NAICOM in April 2016 as the first full-fledge composite takaful insurance operator in Nigeria with a 100 percent indigenous Nigerian shareholding. The company currently plays the pioneering and leading role in unlocking takaful insurance potential for Nigeria. Its operational framework is regulated by NAICOM and is also subject to the Insurance Act 2003.