Most governments throughout the globe try to use their insurance resources to achieve and maintain sustainable development and growth so that their citizens can enjoy a higher level of life. Somaliland, like any other nation, has been trying to advance its insurance sector and improve its status as well in the global economy. This can be accomplished by government actions in the form of regulator guidelines that will articulate the nation’s development goals and expectations. Some of these objectives and expectations can be met by the insurance market.
In Somaliland, the insurance industry is still in its infancy stage. In the recent decade, the insurance industry has existed in an informal and disintegrated environment without a regulatory body. In recognition of the importance of the insurance sector, the Somaliland government developed vision 2030 to guide the country’s development strategies. One of the seven priority sectors identified under the Somaliland vision 2030 is the Insurance sector, expected to stimulate a vibrant and globally competitive financial sector and promote high levels of savings to finance Somaliland’s investment needs. Also, the government saw the desperate need to establish a body to regulate Insurance companies in the country. This led to the formation of the National Insurance Authority (NIA) under the Insurance Act, No 92/2020 on 10th January 2021.
Somaliland Licensed Players
Prior to the appointment of the NIA, insurance operators used to take licenses from the Central Bank of Somaliland. Currently, there are 6 licensed insurance companies operating in Somaliland. This represents growth in the number of players from one (1) player in 2012.
to six (6) in 2021 resulting from intensified competition within the industry. During the year under review, all registered insurance companies applied for renewal of registration within the statutory time limit. Two new applicants, Wadaag Insurance and Albaraka Insurance applied for registration and was given a license to transact insurance business. The table below shows licensed insurers during the year 2021.