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 or obtaining a separate license.
While a legislative framework for Islamic insurance has been in place in Kazakhstan since 2015, no specialized “takaful” insurance organizations have yet been established, and such products have not gained widespread use. The Agency attributes this, in part, to the requirement of setting up a separate insurance company and obtaining a separate license.
The product range is set to expand in stages, depending on demand and market readiness. The initial stage may see the introduction of basic family and general “takaful” products, such as life, accident, motor, health, and travel insurance. Subsequently, the product range may be expanded to include savings-based life insurance, critical illness insurance, property and liability insurance, as well as investment, pension, and corporate products.
According to the regulator, the "Islamic window" mechanism will lower barriers for insurance companies entering the “takaful” segment, broaden the choice of insurance products for the public and businesses, and gradually increase the reach of Islamic insurance, the source reports.
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