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According to (Noor, 2015), medical, agriculture and Microtakaful are increasingly attracting
operators and leading the growth in the market. This is a promising sign because companies
are addressing untapped areas and new segments. Besides, by targeting these lines, operators
are serving genuine needs which are relevant to people’s day-to-day lives and activities.
Microtakaful is one of fastest-growing lines of business and the government is paying a lot of
attention to microfinance and micro insurance through the Central Bank of Sudan.
Microtakaful is of great importance, with around half of the population living below the
poverty line. The Central Bank of Sudan recently increased the maximum amount of finance
under microfinance allowed to a single person, from SDG10,000 (1665 USD) to SDG20,000
(3335 USD). Last year, Ta’awuniya launched its Comprehensive Micro Insurance Policy (CMP),
which the Central Bank of Sudan (CBS) has endorsed and advised banks to use in their
microfinance operations. Besides the standard liability protection of micro insurance policies,
CMP provides health, personal accident and pension covers, in a bid to expand the focus
beyond property to include individual protection.
3.4.6 POLICY RECOMMENDATIONS
According to (Mohammed, 2012), “the Sudanese Insurance market despite its historical
position as a pioneer of Takaful continues to face low penetration ratios and economic
challenges. Low income levels of the Sudanese, high inflations, lack of competent underwriting,
among others continue to plague the market. Overall, the challenges facing the Sudanese
market are similar to those in other Arab and African markets, and it would take some time to
be overcome. However, with the local Takaful industry experiencing significant growth in
recent years, the Sudanese market is poised to participate actively in international Takaful
development. Not surprisingly, Sudan was the country chosen to base the headquarters of the
Federation of Islamic Insurance and Takaful Companies (FIITC). The Vice President and
Secretary General are from Sudan and are based in the Sudanese capital”.
Hassan (2014) argues that “Takaful in the agriculture sector is facing many challenges in
Sudan due to; lack of knowledge among the farming community, the high rates of cover due to
high risk ranging from 5% to 9%, the high administrative costs because of the small areas
covered in comparison with the potential available, the increase in the risk of climatic changes
which has resulted in droughts, floods, and the increase in temperatures, the use of uncertified
seeds and the negligence in the use of technological packages by farmers. The lack of
coordination between financing institution and the management of the agricultural schemes to
determine the volume of credit needed. The re-insurance treaties are sometimes a determent
to the progress of Islamic insurance experience. This is done through offering of small
capacities at very harsh conditions”
For addressing the main obstacles that prevents the diversification of Islamic financial
Instruments and presents solution to Sudan:
 Low appetite for risk sharing: this resulted in depending on certain financial instruments
like Murabahah and very low dependence on Mudarabah and Musharakah modes and
other instruments used in agriculture sector, which is very important for Sudan, like
Muzaraa’ and Musaqah. This could be addressed by government policies that encourage
these modes by exempting them from taxes or subsidies them or any kind on incentives
that are given to the banks which apply them. The policymaker also could ask the banks to
allocate a certain compulsory percentage of their financing and investment portfolios for