For the first time Iran will introduce takaful (insurance) for its Sunni population, which is less than 10 million out of the country’s 85 million people. Amin Re has applied for a takaful licence to operate on Kish Island, off the country’s south coast. According to the Financial Tribune, citing Risknews, Amin Re submitted application both to the country’s regulatory body and the Kish Island Free Trade Zone Organisation.
While Iran has an Islamic financial system it operates differently from Sunni majority countries. The Iranian religious authorities had not previously endorsed a Sunni-focused takaful system, but in December, the finance ministry indicated it was open to takaful due to rising demand.