Regulatory Alerts2025-07-04
Regulations on Capital and Solvency Requirements for Takaful Operators 2025
The Central Bank of Somalia has issued these 2025 regulations to establish comprehensive capital adequacy and solvency standards for all licensed takaful and retakaful operators. The framework mandates a risk-based capital model that calculates charges across credit, market, takaful, and operational risks while requiring operators to maintain segregated capital buffers for both Shareholders’ and Participants’ Funds, supported by Qard-Hasan facilities. Operators must achieve prescribed capital thresholds, conduct annual Own Risk and Solvency Assessments, and submit to stress testing and supervisory interventions to ensure long-term financial stability.
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