BAKU, Azerbaijan, September 23. Kazakhstan
plans to create additional conditions for the development of
Islamic insurance, the Agency of the Republic of Kazakhstan for
Regulation and Development of the Financial Market said.
“The program for the development of the insurance market until
2030 provides for an initiative to create additional conditions for
the development of Islamic insurance (takaful) and expand the range
of insurance products that comply with Sharia principles,” the
agency said.
One of the key areas will be the development of an “Islamic
windows” mechanism, which would allow existing insurance companies
to offer Islamic insurance products without establishing a separate
insurance company.
The legal framework for the development of Islamic insurance has
been in place in Kazakhstan since 2015. However, specialized
Islamic insurance companies have not yet been established in the
country, while takaful products have not gained widespread use.
“One possible reason for this situation is the need to establish
a separate legal entity and obtain a separate license to conduct
Islamic insurance. In this regard, it is proposed to consider the
possibility of using the ‘Islamic windows’ mechanism, under which
existing insurers will be able to develop takaful activities within
their existing organizations,” the agency said.
At the same time, Islamic insurance activities will be separated
from conventional insurance. Separate accounting will be maintained
for participants’ funds, assets, liabilities, income and expenses,
while takaful fund assets will be invested in assets that comply
with Sharia principles.
According to the agency, the activities of an Islamic window
will be carried out in compliance with Sharia governance
requirements and relevant regulatory supervision.
The development of the product range is planned to take place in
stages, taking into account actual demand and market readiness.
At the initial stage, basic family and general takaful products
may be offered, including life insurance, accident insurance, motor
insurance, travel insurance and health insurance.
The range may subsequently be expanded to include savings-based
life insurance, critical illness insurance, property insurance for
individuals and businesses, liability insurance, as well as more
complex investment, pension and corporate products.
