Kazakhstan has outlined an option for existing insurance companies to offer Islamic insurance products without setting up a separate entity via an “Islamic window” mechanism.
The initiative is included in the Insurance Market Development Program through 2030. The mechanism will allow insurers to develop takaful operations within their current organizations, using segregated accounting for participant funds, assets, liabilities, income, and expenses.
A legal framework for Islamic insurance has been in place in Kazakhstan since 2015, yet no dedicated Islamic insurance companies have been established in the country. The requirement to set up a separate legal entity and obtain an independent license is cited as the reason. Investments of takaful fund assets will be directed into Sharia-compliant instruments.