Faidika, insurers launch bancassurance services

Dar es Salaam. Insurance products and services will now be available at Faidika outlets as the microfinance institution joins a number of commercial banks to launch bancassurance products and services.

Faidika - which is a subsidiary of the regional inclusive finance group Letshego Holdings Limited - has formed strategic partnerships with several insurance companies, to provide a holistic range of insurance covers in the market.

The company has partnered with Sanlam, Sanlam Life, Alliance General, Britam General, Strategies General and Medical, First Assurance General, Jubilee Life and Jubilee General in its bancassurance agenda.

The partnerships enable Faidika to offer life, health and general insurance products and services.

It provides assurance cover for all risks against assets industrial products, fire and allied perils, motor, accident, home insurance, burglary and theft, professional indemnity, goods-in-transit and marine and cargo insurance cover, among others.

Faidika’s chief executive officer Baraka Munisi said with the bancassurance arrangement the company is diversifying its product offering. Through bancassurance solutions, Faidika becomes a seamless, one-stop financial services provider. Insurance services will provide peace of mind for Tanzanians, according to Faidika head of sales, marketing and channel, Asupya Nalingigwa.

Faidika is a licensed financial services provider, offering loans to individuals across the public and private sectors.

The company is a wholly-owned subsidiary of Letshego Group and operates as a non-bank financial institution with 16 branches, one sub branches and 86 satellite offices with a staff complement of 58 employees.

He said Faidika will use its network comprising the six zones of Dar es Salaam, Dodoma, Mbeya, Arusha, Mwanza, Tabora; over 86 other offices and numerous satellites across the country to reach as many citizens as possible.

Tanzania Insurance Regulatory Authority (Tira) communications officer Eliezer Rweikiza said on behalf of the commissioner general that through the bancassurance, the government expected an increase in penetration.

“It is expected that the premium and customers collections as well as the contribution to the GDP will increase,” he said.

He said Faidika has been licensed to ethically provide insurance services to Tanzanians according to the Tanzania laws and regulations and design market or demand driven products.

“Insurance contribution in the GDP is relatively low, your inclusion in the provision of services should increase the country’s annual revenue collections as well as attracting other players,” he said.

Faidika board chairman Adam Mayingu said the microfinance understands that prompt responsiveness to customer’ needs generates trust, improves relationships and gives them gratifications.