Somalia 'could receive microinsurance service'

Jul 05, 2011

A new microTakaful service could be introduced in Somalia.

A new microTakaful service could be introduced in Somalia.The United States International Development Agency and global microinsurance company MicroEnsure are currently conducting a pilot study in the county, the Islamic Globe reports. If the trial is successful, the financial solution could be rolled out across the nation. Acting Country Manager for MicroEnsure Kenya Kate Waiganjo confirmed that the development is progressing, but could not give any further information on the project as a final decision on its distribution is yet to be made. However, she did state: "The service will take care of the cultural interests of the Somali people, most of whom are Muslim." According to The Microinsurance Centre, Somalia has one of the lowest uptakes of microinsurance in Africa, despite many other eastern African countries having a strong level of adoption among citizens. The solution may also help increase access to financial services in Somalia, as the Islamic Globe reported that the nation's financial system has been adversely affected by civil war, with many banking services currently based on informal arrangements.