Insurance in Somalia

Takaful is a cooperative insurance system in which participants contribute to a Participant Risk Fund that pays covered losses according to the contract. Family Takaful covers risks such as term life, group life, credit, savings and endowment products. General Takaful covers areas such as agriculture and livestock, engineering, fire and other property risks, liability, marine and aviation, medical, motor and work-related compensation. The actual products available depend on the licensed provider and policy terms. Under the Federal Government of Somalia, the Central Bank of Somalia (CBS) licenses and supervises Takaful and Retakaful providers. Retakaful supplies risk-sharing protection for Takaful providers. The National Takaful Law No. 05/2025 and CBS rules issued in 2025 cover licensing, financial reporting, capital and solvency. A provider must display its licence, maintain required capital and solvency, separate relevant funds, apply Shariah governance and provide contract documents and a consumer complaints process. Companies, agents, brokers, Bancatakaful services and digital distributors can provide access, but cover begins only after the required contribution has been paid. A cover note may apply until the final Takaful certificate or policy is issued. CBS formalisation accelerated on 13 July 2025. On 27 January 2026, four first licences were reported for First Somali Takaful Insurance LTD, Amanah Insurance LTD, Baraka Takaful Insurance LTD and Salmaster Insurance. The current CBS directory lists eight entries: Amanah Insurance, Baraka Takaful, Salmaster Insurance, FISO Insurance, Takaaful Africa, Kobciye Insurance, Wadaag Insurance and Tamini Insurance. First Somali is not shown in that current directory, so a provider's licence status should be verified immediately before purchase. A provider's regulatory requirements do not determine the customer's price. Contributions, deductibles, exclusions, claim deadlines and covered events are set by the individual contract, and no public standard price or benefit table has been evidenced. The CBS fee schedule includes a USD 1,000 application fee, a USD 5,000 provider licence or renewal fee, at least USD 1,000,000 in paid-up capital, a 10% security deposit, a USD 50,000 broker deposit, a USD 200 agent licence fee and a 1% quarterly administrative levy on Gross Written Contribution. These are regulatory charges on providers or intermediaries, not a standard household premium. For a claim, the participant or legal successor submits the required notice and documents to the provider. The provider may appoint a loss adjuster to assess the damage. The payment decision follows the Takaful contract, exclusions, evidence and any applicable claim deadline. Somalia has no publicly evidenced uniform claim-service deadline or national insurance ombudsman, so the policy's complaint and dispute provisions deserve careful review. The Federal Government's Ministry of Labour and Social Affairs is responsible for policy and legislation concerning social insurance and pensions, but no complete nationwide structure for enrolment, contributions, benefits or claims has been publicly evidenced. The Social Health Insurance Authority is a public, solidarity-based, non-profit institution developing social health insurance through a phased process; nationwide enrolment dates, contribution rates, benefits and claim deadlines have not been publicly established. These arrangements should not be treated as a nationwide entitlement. Somaliland has a separate de facto regulatory framework. The Somaliland National Insurance Authority, also called SLNIA or NIA, regulates insurance under the National Insurance Authority Act Law No. 92/2020 and the Insurance Companies Act No. 104/2023, including licensing, solvency, consumer protection and Shariah compliance. CBS rules do not automatically apply in Somaliland. In Puntland and other federal member states, no direct local insurance regulator has been reliably evidenced in the available official material, so Federal Government or Somaliland rules should not be transferred there without verification. Where formal cover is unavailable, people may rely on payment from their own funds, diaspora support, charitable financing or an employer or project arrangement. These alternatives can help pay a loss but do not create insurance rights, standard premiums or guaranteed claim payments. Insurance is therefore most practically relevant for commercial property, cargo and marine transport, motor risks, construction and engineering, employer liability, medical cover and other business risks, while household-wide social protection remains limited and uneven.