The Cabinet of Ministers of Kyrgyzstan has approved requirements for insurance based on Islamic principles. The resolution «On Approval of Requirements for Insurance Based on Islamic Principles (Takaful), Mandatory Insurance, and Annuity Insurance» was signed by Adylbek Kasymaliev, the Financial Market Regulation and Supervision Service reported.
The document is aimed at developing the insurance market, expanding financial instruments in line with international practices, and protecting the property interests of individuals and legal entities.
Under the new framework, the object of Islamic insurance (takaful) is the policyholders’ (participants’) property interests, linked to the obligations of the takaful operator as established by Kyrgyzstan’s civil legislation. This also includes compensation for damage to life, health, and property in the event of insured incidents stipulated by the takaful agreement.
Licenses for conducting Islamic insurance activities will be issued by the authorized state body responsible for the supervision and regulation of the non-banking financial market.
All insurance and reinsurance organizations operating within the Islamic insurance framework are advised to bring their activities into compliance with the new requirements within six months from the date the resolution enters into force.
