Insurance reforms deliver tangible results as service membership soars

Business Reporter

Mwananchi Communications Ltd

Dar es Salaam. The number of Tanzanians using insurance services increased by 10.2 percent last year to 25.9 million, thanks to growing public trust and a wave of reforms across the sub sector.

Tanzania government targets to ensure at least 50 percent of the population uses insurance by 2030 and raise the contribution of the industry to the economy to reach at three percent.

According to the latest annual report released by the Tanzania Insurance Regulatory Authority (Tira), 39.2 percent (25.9 million) of the total projected population of 66.3 million in Tanzania was covered by insurance services in 2024, compared to 37.7 percent (23.5 million) in 2023.

The contribution of insurance to the gross domestic product also increased to 2.08 percent in 2024, compared to 2.01 percent in 2023, stated a summary of the report launched on Friday in Dodoma.

The growth reflects about restoring public trust, introduction of accessible products, and investment that’s reshaping how Tanzanians protect what matters most, said Commissioner of Insurance, Dr Baghayo Saqware.

“This positive trend is the result of strategic interventions to promote insurance literacy and make insurance more accessible to all Tanzanians,” he said during the presentation of the report.

In assessing market growth last year, one person spent Sh22,878 on insurance compared to Sh19,531 previously, he said.

Dr Saqware said the jump reflects increased awareness, improved digital access, and reforms like the rollout of the Universal Health Insurance initiative, which bringing services even to previously underserved communities.

The report also indicates a 26.4 percent rise of the number of permanent jobs created by the insurance industry to 6,434 in 2024, up from 5,595 in 2023.

The industry’s financial backbone is also strengthening. The Gross Written Premium (GWP) grew by 20.2 percent, reaching Sh1.52 trillion in 2024, up from Sh1.24 trillion the previous year.

“We are committed to sustaining this momentum,” said Dr Saqware. “Our goal is a market that is free from fraud and malpractice where growth is driven by trust, merit, and service with public confidence, insurance becomes a powerful tool for poverty eradication and national prosperity.”

The report indicates that insurance companies paid out Sh545.4 billion in claims last year, an 11.7 percent increase from the Sh488.3 billion paid out in 2023.

“The payouts are vital lifelines to families and businesses during their most vulnerable moments,” said Dr Saqware.

“The ability to pay claims promptly is key to public trust,” Dr Saqware added. “What we are seeing now is an industry that is standing tall ready to support Tanzanians through every twist and turn of life.”

Speaking at the official launch, the Minister of State, President’s Office Finance and Planning (Zanzibar), Dr Saada Salum Mkuya, said insurance plays a crucial role in protecting the economy at the individual, institutional and national levels.

She also directed Tira to improve claims management by ensuring genuine claims are settled promptly, while disputed ones are handled professionally to maintain trust in the insurance industry.

“The government is committed to support the insurance sector and ensure financial security, economic resilience, and inclusive development for all citizens,” she said.

Commenting on the report, a financial consultant and researcher, Ms Esther Mwamafupa, said the report demonstrates growth through a more detailed and comprehensive analysis compared to previous editions.

“In the past, we often saw only general overviews, but this report is more informative, helping investors identify the most promising areas for investment and the available opportunities,” she said.

The report identifies regions that require greater investment for example, the southern regions which still have a relatively low contribution despite having strong agricultural potential, such as cashew farming.