Sanlam targets to expand market share

Dar es Salaam. Sanlam Life Insurance Company aims at increasing its market share to 75 per cent this year from 69 per cent.

The company’s chief executive officer, Mr Khamis Suleiman, said the Bank of Tanzania directive to lower the interest rate has expanded the credit market, and that would stimulate the insurance business.

“Last year was the best year for us as our company grew at an average of 15 per cent compared with the previous year. The situation improved our market share because banks that we are partnered with have lent huge amounts of personal loans,” he told The Citizen.

He said last year the government’s accommodative monetary policy had a huge impact on the credit market, which also created business for insurers.

“So, our credit insurance portfolio increased as all banks’ loans were insured. In case of death of borrowers, the insurer will cover the risk,” he said.

The company’s strategy also involves increasing the number of agents, who will expand the coverage, mainly to small- and medium-income people.

According to him, plans for this year are on the formal sector as there are more than 2.5 million employed but only 100,000 have life insurance, which is low number compared with other insurance products.

“To reach our targeted 75 per cent of the market share, we need to focus on selling life insurance to individuals,” he said.

He said 2017 was the most challenging year to insurance companies because 70 per cent of their business relied on banks, which illiquidity.

The situation led to the shrinkage of lending and increase in bad loans.

Sanlam Life Insurance was established in 2005 as the first specialist life insurer in Tanzania.