By Abdullahi Salad - Reporter
MOGADISHU (Dawan Africa) — Irmaan Podcast has aired an in-depth interview with Mohamed Takaful, Chairman and Founder of First Somali Takaful Insurance (FISO), focusing on the challenges and process behind reviving modern insurance services in Somalia after decades of institutional collapse.
The programme, hosted by Dawan journalist Abdullahi Salad, explored the legal, business and institutional journey behind the establishment of FISO and the gradual return of the insurance sector in Somalia.
Mohamed Takaful said the concept of insurance initially faced widespread public skepticism, particularly during a period when Somalia was emerging from political and economic instability.
“Some people thought I was crazy,” he said, referring to the early years of promoting insurance services in the country.
He said attitudes gradually changed as the company continued operating and public understanding of insurance improved.
The interview also examined the development of Somalia’s Insurance Law, which, according to Takaful, began in 2018 and was officially approved and signed into law in 2025.
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He said the process faced several obstacles, including delays linked to funding challenges and institutional procedures.
Takaful described insurance as an important pillar for economic growth, arguing that a functioning insurance system helps protect businesses, strengthen investor confidence and reduce financial losses caused by unexpected events.
“You pay a small amount, and a large responsibility is taken on your behalf,” he said while explaining the role of insurance in risk management.
According to Takaful, FISO operates under the Islamic Takaful model and provides services covering motor, travel, marine and cargo, engineering, health, agriculture and other business-related sectors.
He also raised concerns about foreign companies operating in Somalia that obtain insurance services abroad instead of using local providers, saying the practice limits domestic economic growth and reduces opportunities for Somalia’s financial sector.
Somalia currently has seven insurance companies operating in the market, according to Takaful, who said the firms have established an association aimed at strengthening coordination on regulation, public awareness and industry standards.
FISO was among the first companies involved in restoring modern insurance services in Somalia after the collapse of state institutions, launching officially in December 2014.
The interview also highlighted the broader financial risks faced by Somali businesses, including transport, construction, cargo, agriculture and health-related sectors, where losses linked to accidents, fire, damaged goods and workplace injuries remain common.
Irmaan Podcast described the discussion as not only the story of one company, but also a reflection of Somalia’s broader efforts to rebuild financial institutions, legal frameworks and public trust after years of instability.