Somalia’s First Insurance Company Thrives as Economy Reinvigorates
Somalia’s first insurance company in over 25 years is now operational in Mogadishu, adding yet another step to the country’s reconstruction journey. Tafakul Insurance currently offers motor vehicle, health and marine insurance. Tafakul ventures into a sector uncommon to the Somali people, having been eroded during the years of civil war. It now joins the recovery journey of the Somali economy alongside other vibrant sectors which include banking, agriculture, telecommunications and construction.
The Tafakul insurance company Chief Executive Officer Mohamed F Jeso says they were encouraged to set up the company because of the visible growth in the various sectors with a glaring gap in insurance.
“We can see the improvement, we can see the development and we can see the expansion of the businesses in Mogadishu. We can see that the diaspora are coming back and investing in their country so all these things show us that it’s the suitable time to establish an insurance company here. Without the insurance, no one will dare to come and invest here because of the lingering uncertainty,” said Mohamed F. Jeso the CEO.
The company is currently registered and regulated as per Sharia law, as the government works towards establishing a legal framework that supports growth of the economy and further increase the interest of investors in the economy
Fadum Mohamed Farah, the company’s in-charge of sales and customer care says “We handle about 12 products including health insurance, vehicle insurance, driving insurance. Before we insure someone, we sign a contract knowing very well that the agreement is of mutual benefit and helping one another since the company is founded and operated on Islamic principles”.
Tafakul enjoys growing clientele, now in their hundreds with majority of their clients seeking motor vehicle insurance.
One of the clients claiming compensation for his vehicle says the service has been very helpful.
“I am a customer of this insurance company. I registered with them long time ago. I am at the claim department. I was involved in an accident. I told them about the accident I was involved in. They helped me after I claimed my insurance,” says Khadra Adan Ahmed, a customer.
Though in its infancy, the insurance sector adds a much needed ingredient to an economy experiencing fast growth. The International Monetary Fund in its first economic assessment of the Somali economy in 25 years said it grew by 3.7% in 2014, mainly driven by growth in the agricultural, construction and telecommunications sectors.