Salaam Takaful leverages technology to provide parametric crop Takaful coverage. The real-time satellite-based solution triggers payouts to policyholders automatically without requiring them to make a claim. Beginning with Salaam Takaful’s induction into a regulatory sandbox in 2021, the parametric solution is now taking a more cohesive and consistent shape with a pursuit of a sustainable business model for scaling the initiative to a national-level program.
Salaam Takaful launched its pilot execution in the district of Rahim Yar Khan with the help of WaterSprint as a technology service provider and REEDS working on the ground level to assist in tech literacy among farmers. It has hired a team of agronomists from different agriculture-oriented cities who will use their technical skills to evaluate the findings of the pilot execution and provide valuable solutions to improve the product.
The pilot execution of the parametric solution is a stepping stone toward its full potential. The Takaful operator is currently exploring pilot projects in the Gadap, Rahim Yar Khan, Rajanpur, Bahawalnagar, Swabi and Mardan districts.
“Salaam Takaful aspires to contribute in the agri sector by enabling farmers to be more resilient. In this respect, we are partnering and collaborating with various ecosystem players in the value chain, including but not limited to, government, agritech organizations, not-for-profit organizations, banks and financial institutions, development finance institutes, pesticide, fertilizer and seeds input providers, etc. We believe together we can create meaningful impact and build on farmers’ resilience, especially with respect to climate change”, Umair Ismail Ghaya, the head of specialty and transformation at Salaam Takaful, tells Islamic Sustainable Finance & Investment.
The operator is expecting to create an impact on 6000-plus households in the first year of business and create a positive impact on 33,000-plus households by 2026. Highlighting the emphasis on financial inclusion in the UN Sustainable Development Goals, Salaam Takaful has committed to align all future social efforts toward creating financial inclusivity.