In Sudan, all insurance is Islamic: since ministerial decree No. 219 of 1992, conventional insurers and reinsurers have been converted, and the Insurance Act 2018 now requires every company to operate according to sharia under a cooperative model.
A conversion ordered by decree in 1992
Ministerial decree No. 219 of 1992 turned every conventional Sudanese insurer and reinsurer into a sharia-compliant company. According to the FAIR market profile, sharia has governed the entire sector since 1993, with no conventional offering existing alongside it.
From the 2001 law to the Insurance Act 2018
Three laws have shaped the market: the Insurance Supervision Act 2001, then the Insurance and Takaful Act 2003, and finally the Insurance Act 2018, which is the framework in force. Each step reinforced the duty of companies to respect Islamic principles.
A regulator whose name varies by source
FAIR refers to a National Insurance Regulatory Authority, MEIR to a National Insurance Supervisory Authority in 2021, and Leading Edge to an Insurance Supervisory Authority in 2016. No official website was verified, and the Central Bank of Sudan does not supervise insurance.
A pioneer in 1979: the Islamic Insurance Company
Well before the general conversion, the Islamic Insurance Company, founded in 1979, was the first takaful company in the country. It still held 15.9% of direct premiums in 2020, making it the second largest player in the Sudanese market.
Shiekan, the long-standing market leader
Founded in 1983 and state-owned according to Axco, Shiekan Insurance and Reinsurance accounted for 16.9% of premiums in 2020. Its management claimed almost half of the market in 2016, and the company operated 79 branches in 2015.
Other companies worth knowing
Behind the two leaders, FAIR lists Taawuniya Insurance with 12.8%, United Insurance with 10.8%, El Nilein Insurance with 8.9% and El Baraka Insurance with 7.3%. All of them apply the same Islamic framework that the law imposes on the sector.
How many insurers operate in Khartoum
Counts differ: 13 companies in 2015 according to MEIR, 15 in 2021 according to Axco, and 16 insurers plus 2 reinsurers in 2020, then 17 companies in 2022, according to FAIR. Direct premiums reached about 22.3 billion SDG in 2020.
Distinctive local terminology
In Sudan, the word takaful refers specifically to the life line, and premiums are called contributions. To understand how this kind of family protection works, see our page on sharia-compliant life insurance, which covers savings and protection in detail.
The cooperative model reform announced in 2021
In late 2021, the regulator announced a review of the model applied for more than forty years: investment returns split 70/30 between shareholders and policyholders, management fees moving towards 30% of contributions and 2.5% of funds set aside for training.
Management fees and the wakala logic
Fees close to 30% of contributions bring the Sudanese system nearer to a paid manager arrangement. How an operator is paid to run the participants' fund is explained on our dedicated page about the operator's wakala fee.
Khartoum, home of an international federation
The International Federation of Takaful and Islamic Insurance Companies is headquartered in Khartoum, a sign of the country's reference role. Libya has joined it, and the neighbouring Egyptian takaful market offers a useful regional point of comparison.
Practical situation and figures to cross-check
The available figures date from 2020 to 2022, and companies still have branches closed in South Sudan since 2011. Before signing any contract, check the insurer's current licence and the continuity of its branches, since public sources are sometimes dated.
Taking out a policy with a Sudanese insurer
- Choose a company named in the FAIR rankings, such as Shiekan, Islamic Insurance Company or Taawuniya, and confirm its licence with the supervisory authority.
- Specify the line you need: in Sudan, takaful means life cover, while motor or fire fall under Islamic general insurance.
- Ask how contributions are split between the policyholders' fund, management fees and investments, especially since the 70/30 reform announced in late 2021.
- Read the exclusions, particularly for property located in areas where the insurer has closed or reduced its branches.
- Keep the policy and contribution receipts, then report any claim promptly to the branch with the required supporting documents.
What makes up a Sudanese contribution
| Component | Role | What makes it vary |
|---|---|---|
| Contribution to the fund | Feeds the common pool that pays claims | Line of cover, insured value, claims history |
| Management fees | Pay the managing company | Moving towards about 30% of contributions under the 2021 reform, indicative |
| Investment income | Shared between shareholders and policyholders | 70/30 split announced by the regulator, indicative |
| Training share | Funds training for the sector | 2.5% of funds according to the 2021 announcement, indicative |
| Deductible | Amount borne by the policyholder | Set in the contract according to the risk |
Documents usually requested
- Valid national identity card or passport
- Proof of address or certificate of residence
- Vehicle registration certificate for motor insurance
- Title deed or lease for real estate
- Medical questionnaire for the takaful life line
- Murabaha financing contract if the asset is financed by an Islamic bank
Common mistakes in Sudan
- Assuming a conventional alternative exists: since 1993, every licensed company must operate under sharia, so the comparison is about service and fees.
- Confusing the Central Bank of Sudan with the insurance authority, when supervision of the sector belongs to a separate body whose name varies across sources.
- Asking for a takaful product for your car without knowing that, locally, takaful means life insurance rather than the motor line.
- Relying on old market shares, such as the 50% claimed by Shiekan in 2016, without checking the more recent FAIR data.
- Failing to ask in writing how investment income is shared between shareholders and participants since the review announced in 2021.
Your questions about Sudanese takaful
Is all insurance in Sudan Islamic?
Yes. Decree No. 219 of 1992 converted all insurers and reinsurers, and sharia has applied to the whole sector since 1993. The Insurance Act 2018 maintains this requirement for every licensed company operating in the country.
Which was the country's first Islamic insurer?
Historically, the Islamic Insurance Company, founded in 1979, was the first Sudanese takaful company. By volume, Shiekan led in 2020 with 16.9% of direct premiums, just ahead of the Islamic Insurance Company at 15.9%.
What does takaful mean in local usage?
According to FAIR and Axco, the word takaful refers to life insurance in Sudan. The other lines, such as motor or fire, are also Islamic but count as general insurance, and premiums there are called contributions.
Why was the cooperative model revised?
In late 2021, the regulator decided to adapt a model more than forty years old: investment returns split 70/30, management fees moving towards 30% and 2.5% of funds reserved for training across the sector.
Takaful operators and organisations
Qatar Islamic InsuranceQatari Islamic insurer offering family and general takaful products to individuals and companies.SALAMA – Islamic Arab InsuranceUAE-based Islamic insurance group present in several countries with takaful health and protection products.Prudential BSN TakafulMalaysian takaful operator, a joint venture of Prudential and Bank Simpanan Nasional, offering family and general takaful cover.Indicative list: assuranceislamique.com has no commercial link with these organisations. Always check the licence with the local regulator.