Terms of Reference
PSPH Health Insurance Sector-Wide Forum - Hargeisa
Background
PSPH has had success in the launch of two mass market health insurance products in
Somaliland and Somalia. The two products have been developed by Wadaag Insurance in
Hargeisa and Baraka Insurance in Mogadishu. This is a huge milestone, considering there was
no previously existing health insurance for the mass market and the only available insurance
has been expensive, affordable only for international NGOs and big formal employers. Health
insurance penetration in the Somaliland market is low and yet though the private insurance
companies exist they have not entered the mass market. These new products offer a
greenfield for growth.
The low level of health insurance awareness among the general population as well as low
capacity have contributed to slow and very cautious uptake for this business by the available
insurance companies. PSPH therefore noted the need to have a sector-wide engagement with
all the relevant stakeholders, including the wider financial sector, incipient regulatory
authorities, and religious leaders. This level of engagement has the potential to bring in better
collaborations, contribute to raising concerns and existing barriers for financial institutions to
offer mass market health insurance products. It will stimulate the growth of the mass market
for health insurance as a profitable business.
It is assumed that having better knowledge, answers, and suggestions on mass market health
insurance could reduce the hesitation of insurers and other financial sector actors to offer or
collaborate on mass market products and financiers to invest in the sector. The other relevant
stakeholders will also improve their support for this business with improved awareness, as the
market demands Takaful compliance.
The low health insurance penetration and awareness calls for an out-of-the-box approach that
will attempt to encourage and bring on board all the potential stakeholders that have a stake in
the health and financial resilience of the population via improved penetration of health
insurance in Somaliland.
With the involvement all the stakeholders, including the government pushing for the
improved health access, the mass market private health insurance will likely get a boost if the
sector is well positioned and opportunities are exposed.
Theme “The Developing Market for Affordable Health Insurance in Somaliland”
Rationale for this forum
o With low development of insurance market, it applies that technical capacity
may be limited and therefore very expensive to apply. PSPH becomes an
important resource as they offer technical assistance to the partners they are
involved with. This forum offers an opportunity to share the available
opportunities for the sector wide players.
o It is clear that there are built-in pooling mechanisms in the financing of health
at the heart of the Somali culture, where various clan members will come
together to assist each other. This forum opens room for further discussions of
leveraging this for the mass market health insurance.
o A key concern for all insurers has been a lack of knowledge and demand for
their products in the mass markets. The individual insurers cannot do all the
leg work and the forum will offer an opportunity where PSPH will create the
potential link of insurers with key stakeholders who can tap into willing group
of clients (e.g., a shop owners group/association or taxi driver association) This
will contribute to increase the demand and attempt to address the concern of
demand by the insurers.
o The forum offers room for potential collaborations to expand the health
insurance market. Other than the financial obligations of the partners,
discussions can raise other pertinent concerns, such as Takaful compliance,
that can be sorted through a wider stakeholder engagement.
o Framework and regulation for the market is lacking and hesitance of insurers
leads us to organize this event so hesitancy can be reduced and any hurdles can
be flagged by various actors.
o There are limited actors in the market
o There are limited collaborations in the market leading to affordable HI
products
Objectives
Overall objective is to bring together all the relevant health insurance stakeholders in a
discussion on the potential business case for the mass market, to raise awareness as well as
concerns for the sector to grow and tap opportunities in the incipient health insurance market.
Specific objectives
o To generate clients for PSPH portfolio assistance or to support PSPH clients
o To provide the audience with the Somaliland mass market size and scale for an
affordable health insurance profitable business.
o To share the current experiences in development of the health insurance mass
market product by PSPH partners.
o To show the different stakeholders how they can profitably tap into and
collaborate in the mass market health insurance value chain.
o To get ideas on how to improve the general uptake of health insurance for the
mass market by working with PSPH and others.
Content / Agenda for the Forum
The role of PSPH in supporting health insurance for the mass market
Size and scale of the mass market in Somaliland
The human development and business case for affordable mass market health
insurance
The role of the different stakeholders and their value add in their business
Case experience in development of Somaliland first mass market health insurance
product – Abdirashid Baaxeer/Sulaiman Egeh and Wadaag Insurance
Case experience from neighbouring Kenya – JP Otieno and Maisha Poa
The Government’s view of the developing insurance market
Religious and community leaders’ commentary
Expected output
o Event planning
o Declarations from the events on working together
o New network and partnership creation
o Action plan for next level engagement
o Expressions of Interest (EOIs) for PSPH programme participation through the
registration desk
o Feedback from participants
Expected number of participants
o 150
Proposed venue
o Damal Hotel, Hargeisa Somaliland.
Timing
o Morning of Sunday, 21st July 2024
