Tira wants National Policy to unlock insurance potential

Arusha. The Tanzania Insurance Regulatory Authority (Tira) has called on the government to fast-track the development of a National Insurance Policy, saying such a framework would enable various sectors to design tailored insurance solutions for property and services, ultimately improving service delivery to citizens.

Tira also urged the swift formulation of regulations to enforce mandatory insurance for marine vessels, commercial buildings, and imported goods.

According to the authority, these measures would help expand insurance revenues and provide stronger protection for citizens in the event of disasters.

The remarks were made by the Commissioner of Insurance, Dr Baghayo Saqware, on Friday, June 20, during Tanzania Insurance Day.

The event, organised by the Institute of Insurance Tanzania (IIT) in collaboration with Tira and other stakeholders, brought together more than 400 participants from across the sector.

“The establishment of a national insurance policy will help expand the market and support the development of customised insurance plans. We therefore urge the government to expedite the process,” said Dr Saqware.

He noted that while the Finance Act passed in 2022 includes provisions for compulsory insurance of commercial buildings, marine vessels, and imported goods, the supporting regulations have yet to be developed.

He emphasised the urgency of finalising the regulatory framework to unlock market potential and improve revenue generation.

Responding to the remarks, Zanzibar Chief Secretary and Insurance Ambassador, Ms Zena Said—who officiated the event—questioned the delay in implementation.

“If the Act was passed in 2022, the regulations should already be in effect to help boost the insurance market,” she said.

“I will present this matter to the Chief Secretary to accelerate the process and ensure that both the national policy and mandatory insurance regulations are implemented. These are crucial for achieving the government’s 2030 insurance industry targets,” she added.

Reviewing the industry’s performance over the past four years, Dr Saqware said the sector has recorded significant growth, with increases in premium income, service providers, employment, and insurance products tailored to serve farmers, fishers, small-scale traders, and informal sector workers.

“This growth reflects the impact of regulatory efforts, stakeholder collaboration, public awareness campaigns, and product innovation. We are now reaching more citizens and strengthening public trust in the sector,” he said.

He noted that the number of insurance service providers grew from 993 in 2021 to 2,208 last year—an overall increase of 122.4 percent, with an average annual growth rate of 22.1 percent.

The number of beneficiaries of insurance services rose from 14.2 million in 2021 to 25.9 million last year, marking an 82.4 percent increase over four years—equating to an annual growth rate of 22.2 percent.

In her opening remarks, Ambassador Said commended Tira and its partners for the sector’s progress but stressed the need to enhance public education and the use of digital technologies to improve outreach and uptake.

She emphasised three priorities: leveraging technology, building human capital, and expanding health and agriculture insurance coverage.

These, she said, would help align the sector with the government’s broader economic development agenda through financial sector inclusion.

“The low insurance penetration rate stems from limited use of digital technologies and inadequate public awareness. If citizens understand the value of insurance, they are more likely to subscribe,” explained Ms Said.

She called for greater investment in human capital development for the insurance industry, adding: “We need a skilled workforce to develop and deliver appropriate insurance products.”

“I also urge Members of Parliament to support awareness campaigns, particularly in rural communities, to improve understanding,” she added.

In a keynote address, the Tanzania | United Nations Development Programme (UNDP) Tanzania Resident Representative, Mr Shigeki Komatsubara, said the UN agency, in collaboration with the government and industry stakeholders, is supporting the institutionalisation of agricultural insurance to enhance resilience among smallholder farmers.

“Despite its potential, insurance remains underutilised globally and locally. In Sub-Saharan Africa, penetration is below three percent,” he said.

“Here in Tanzania, it stands at around 2.01 percent of Gross Domestic Product (GDP). While the sector has shown notable growth, with gross premiums reaching Sh1.4 trillion last year, significant coverage gaps remain—especially in agriculture, health, and micro-insurance,” he added.

Mr Komatsubara reaffirmed UNDP’s commitment to work with the government and insurance industry to build a prosperous, resilient future for Tanzanians, “UNDP is proud to invest in a future of Tanzania—Tanzania, for Tanzania.”