On behalf of the Board of Directors and Management, I am pleased to welcome you to the website of the National Insurance Authority.
The concept of Islamic insurance is new in Somaliland and the insurance industry is in its infancy stages. In the past few years, insurance companies operated in an informal environment with no proper regulatory framework in place. As a result, the National Insurance Authority (NIA) was established under the provision of the National Insurance Act No.92/2020 as a regulatory body. The Somaliland insurance sector now operates within the legal and regulatory framework established by the NIA.
As of December 2022, there are a total of seven insurance companies registered under the regulations of the National Insurance Act in the Republic of Somaliland; offering various types of insurance including motor, property, liability, and health insurance.
Even though the Somaliland insurance sector has made some progress over the past few years, there is still a long way to go before it becomes fully developed. There are several factors hindering the growth of the insurance industry such as a lack of awareness about the nature and operation of insurance, limited product availability, and low penetration rates. As the Authority, we will take the necessary steps to develop the industry and create a supportive environment for foreign investors and operators; as the insurance sector has the potential to become a key driver for economic growth in the future.
Moreover, in an effort to align with contemporary standards, we are pushing ahead with an implementation of a digital software regime. We aim to produce a framework that achieves prudential supervision while preserving global competitiveness. Once the software is in place, supervisory efficiency will be enhanced, and decisive intervention actions will be taken to benefit both the insurance players and the insuring public.
The Somaliland insurance industry is poised for significant growth over the next few years ahead. As a regulator, we are committed to supporting the growth and development of the insurance industry in Somaliland by ensuring that the sector operates in a safe and sound manner in accordance with the applicable laws and regulations.