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Somalia opens first insurance company in over 20 years

The first insurance company of Somali in over 20 years opened in its capital Mogadishu on Monday, marking a shift in the business practice in the country, which has for a long time been prone to risks without cover.

The company, First Takaful and Re-Takaful Insurance Company, aims at providing life, car and house insurance in line with the Islamic insurance principles in the Somali market.

Mohamed Abdi Mohamed, general director of the company, told Xinhua that setting up of Takaful was informed by the need to provide businesses with cover from risks and promote business in Somalia.

He said Takaful was going to develop customer-friendly insurance products to ensure that majority of the businesses in Somalia embrace insurance, not just for cover from risks but also as a form of investment for young people.

“We are focusing on delivering Sharia compliant insurance products to any part of the country and across the world,” said Mohamed, noting that Takaful was going to fill the gap left in the insurance industry which has been nonexistent for more than two decades.

Somalia has been without any form of insurance since the collapse of central government in 1991, thus exposing businesses to risks which would otherwise have been shielded from such risks. The motor vehicles sector has been hardest hit since several vehicles have been destroyed through hand grenades, and the owners are left to bear the full cost of recovery.

Source : Xinhua