Etiqa Insurance Singapore and AIA Singapore have entered into a strategic distribution partnership aimed at broadening access to Shariah-compliant Takaful products in Singapore.

Under the agreement, Etiqa’s family Takaful offerings will be distributed through AIA Singapore and AIA Financial Advisers, extending reach through a tied advisory network of more than 6,300 representatives. The partnership is designed to increase availability of Takaful solutions to a wider customer base, including both Muslim and non-Muslim consumers seeking values-based financial products.

Growing demand for values-based insurance

The collaboration comes amid rising global demand for Takaful products, with the market projected to grow from US$36.5 billion in 2025 to US$63.6 billion by 2030, according to data cited in the announcement. Etiqa said it has already seen increasing momentum in Singapore, driven by greater awareness and adoption of Shariah-compliant financial solutions.

The two insurers said the partnership combines Etiqa’s experience in Takaful - having reintroduced the offering to Singapore after more than a decade - with AIA’s distribution scale and customer reach.

Focus on accessibility and financial inclusion

Both companies indicated the initiative is intended to improve accessibility to protection and savings products aligned with ethical and socially responsible principles. While rooted in Islamic finance, Takaful products are positioned as appealing to a broader segment of consumers seeking transparency and values-driven financial planning.

In addition to distribution, the partnership will include efforts to raise awareness and understanding of Takaful through education and community engagement initiatives. These efforts are expected to focus on improving financial literacy and expanding access to underserved groups.

Part of broader regional strategies

The agreement reflects wider trends across Asia’s insurance sector, where insurers are increasingly forming partnerships to expand distribution and address evolving customer preferences. For Etiqa Insurance Group, the move aligns with its position as a regional provider of insurance and Takaful solutions, while for AIA Group Limited it builds on its extensive agency network across multiple markets.

The partnership is positioned as a step towards developing a more accessible and integrated Takaful ecosystem in Singapore, as insurers respond to growing interest in alternative and values-based financial solutions.