November 10, 2023 – A first in Pakistan and across a number of emerging markets, common people will have access to innovative banca-takaful products and services through easy and tech-based processes. Two forward-thinking Pakistani startups – Instaful Solutions and Tidal Waves – have joined hands to meet risk and protection needs of millions of customers. This strategic alliance aims to lead the way in financial inclusion blending expertise, Shariah principles and cutting-edge technology.
Banca-takaful or bancassurance in conventional insurance is a method of providing Takaful or insurance products to bank customers. Over years, the concept has evolved to mostly cater to a select few affluent clients representing 5 to 10 percent of total bank clientele leaving majority of the customers – often terms as the mass-market (70 to 80 percent) – un-served or underserved. This is common not only in Pakistan but also in various emerging markets across Asia and Africa.
Mass-market customers often voice this paradoxical situation where they are considered ‘too poor’ for conventional model and are ‘too rich’ to qualify for microinsurance. Recognizing this gap, the leadership of Instaful and Tidal Waves with a shared vision and distinct yet highly complementary offerings have decided to join forces to address this market segment.
The signing of the strategic alliance took place in Pakistan recently where Rehan Butt, Founder & CEO of Instaful, stated: “We at Instaful consider financial inclusion through inclusive insurance or inclusive takaful a responsibility rather than a mere business venture. Recent geopolitical and socioeconomic uncertainties, economic crises and inflation necessitate a concentrated effort to meet the needs of the “forgotten middle” market segment. We are delighted to have found the right partner who share a strong belief in financial inclusion through the right approach”.
Ahmad Khan, Founder & CEO of Tidal Waves, echoed Rehan Butt’s sentiments about the critical importance of financial inclusion. In his statement, Ahmad emphasized the need for a comprehensive and technologically advanced solution in the Takaful insurance industry.
He pointed out a significant gap in the market, stating that, from a technological standpoint, there is currently no end-to-end solution product available. Tidal Waves offers a seamless integration of Point of Sales with highly parameterized business and financial operations, tailored specifically for the Takaful insurance sector. The product has already been successfully implemented in a Kuwaiti group sponsored company in Pakistan and is (currently live in numerous banks with their extensive branch network) now planning to expand their operations in various countries.
Instaful Solutions is on a mission to debunk the belief that “insurance is always sold, never bought” by simplifying both its delivery and purchase. Founded by Rehan Butt, a trailblazer in micro, digital and inclusive insurance, the company collaborates with insurance providers and consumer brands including financial institutions, telecom operators, FinTechs, sharing economy apps, digital platforms and development agencies, to make insurance easy, affordable, available and accessible. For more information, please contact: contact@instaful-solutions.com
Tidal Waves plays a pivotal role in bridging the technological gap that has been a longstanding challenge in the insurance sector. This fundamental gap has prevented businesses from reaching their full potential. Founded by Ahmad Khan, a veteran with more than 3 decades of experience in the insurance and Takaful industry, The company enables firms to unlock new potential and achieve peak performance in the insurance market by overcoming technology limitations. For more information, please contact: info@tidal-waves.com