Kazakhstan plans to widen conditions for the development of Islamic insurance (takaful) and the expansion of the range of Shariah-compliant insurance products, including allowing the forming of takaful windows.
The initiative is provided for in the Programme for the Development of the Insurance Market for the years up to 2030, said the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan.
Takaful windows will allow insurance companies to offer Shariah-compliant products without creating a separate insurance entity.
The legislative framework for the development of Islamic insurance in Kazakhstan has been in effect since 2015. However, Islamic insurance organisations have not yet been established in the country, and takaful products are not widely bought. Insurance companies have hesitated because existing rules require establishing a separate legal entity and obtaining a separate licence to offer Islamic insurance.
Under the plan, takaful products are to be developed in stages, taking into account actual demand and market readiness. In the initial phase, core family and general takaful products may be offered, including life insurance, accident insurance, auto insurance, expatriate insurance and health insurance.
The range can expand later to include life savings insurance, critical illness insurance, property insurance for individuals and businesses, liability insurance, and more complex investment, pension, and corporate products.