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How State-run NIC can capture 25pc of insurance market

Sunday March 07 2021
NIC PIC
By Ephrahim Bahemu

Dar es Salaam. The National Insurance Corporation (NIC) plans to double its market share in the next five years, thus owning the entire insurance market by over a quarter.

NIC’s CEO Elirehema Doriye said this when speaking to The Citizen, whereby he highlighted the company’s goals based on the organization’s strategic plan ending in 2026.

“Currently, our share of the market is 13.2 percent but according to our strategic plan, come 2026 we must be in control of the market by 25 percent and that will be achieved by having business partnerships with other establishments, especially financial institutions, so to increase our ability of reaching more people,” he said.

Dr Doriye, whose organization has more than 60,000 customers, said another factor that will help them achieve their goal is the fact that they were the sole supplier of East and Southern African Economic Community (Comesa) insurance in the country. “Every country has an insurance company that is a representative of others (Bureau), in this country it’s us, and this is a great opportunity for us, and our fees for the insurance are Sh15,000 for a private car and Sh20,000 for a commercial car as insurance lasts 30 days and applies to all Comesa countries,” he said.

In addition, Dr Doriye said through these strategies the agency will continue to hold its record of being the company that earns more profit than other companies in the market. He said the average profit after corporation’s tax is Sh25 - 26 billion.

In another development, Dr Doriye said the business partnership between them and TPB bank has increased the agency’s closeness to serving Tanzanians as they can access such services through the bank’s branches nationwide.

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“Our good business relationship means a lot in serving Tanzanians, we have brought them closer to the service and now they should see insurance services as important and not a luxury,” said Dr Doriye at a dinner for staff of the two institutions.

For his part, TPB chief Sabasaba Moshingi said the focus of the bank and the government is on ensuring that all Tanzanians have access to financial services but the state of insurance services is low, but hopefully, he said, through their partnership with NIC they will reach more.

“We aim to ensure that more people have access to financial services but the issue of insurance is very important, we will continue to design more services for the benefit of Tanzanian customers together with connecting our systems with NIC to promote mutual understanding,”he said.


Moshingi said at the event.

In addition, Moshingi said in every branch of the bank one can get the same insurance services as he would in insurance offices and therefore it is imperative to take advantage of the proximity.

By 2030 the Tanzania Insurance Regulatory Authority (TIRA) set targets to boost the insurance market and reach more citizens from the current 15 to 50 percent, increasing the contribution of the insurance industry to reach a GDP of 3 percent.

During the business year 2019, the insurance sector recorded Sh813.76 billion in raw material insurance and by the second half of 2020, revenue had reached Sh433.33 billion, indicating growth in the sector.


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