Existing insurance companies in Kazakhstan will be able to establish «Islamic windows» without creating separate legal entities, according to the Agency for Regulation and Development of the Financial Market (ARDFM). The initiative is aimed at developing Islamic insurance, known as takaful.
Takaful means «providing mutual guarantees.» It is an insurance system based on profit- and loss-sharing principles and operates according to the principles of mutual assistance, solidarity and compliance with Sharia law. Participants contribute funds to a common pool, from which compensation is paid to participants who incur losses. An operating company manages the...