Insurance regulator eyes industry's three percent GDP contribution

Dar es Salaam. The Tanzania Insurance Regulatory Authority (Tira) has unveiled strategies aimed at raising the sector’s contribution to the national Gross Domestic Product (GDP) to three percent within the next five years.

The measures include the rollout of Universal Health Insurance (UHI), increased use of digital systems, and targeted reforms to attract investors. Officials say these steps are expected to significantly expand the number of people using insurance services.

Although UHI was initiated in January this year through private companies, the government is finalising the announcement of the official standard package.

According to Tira, policy and legal reforms introduced over the past four years have helped expand the sector and attract more investors, with insurance’s share of GDP rising from 1.168 percent in 2021 to 2.01 percent in 2024.

Speaking at a meeting with editors and journalists organised by the Treasury Registrar’s Office yesterday, Commissioner for Insurance, Dr Baghayo Saqware, said Tanzania is now second in East Africa behind Kenya, which stands at 2.5 percent.

“Our plans are on track, and with successful implementation, we expect to surpass Kenya and reach 3 percent within the next five years,” he said.

Dr Saqware noted that across Africa, only South Africa and Morocco currently record insurance sector’s contribution above 10 percent of GDP. He said Tanzania’s strategies are designed to ensure steady growth and bring wider benefits.

He described the adoption of the UHI law as a milestone, making Tanzania the only country in the Southern African Development Community (SADC) and East African Community (EAC) to introduce such legislation.

“This will not only expand coverage but also create jobs and improve people’s welfare,” he added.

Other growth drivers highlighted include the establishment of an agricultural insurance consortium, which has already paid compensation to tobacco and cotton farmers. Dr Saqware urged greater investment in the sector, including the placement of insurance agents in every ward to support the expansion of UHI and agricultural schemes.

The commissioner also cited progress in ICT infrastructure, with systems now linking Tira to institutions such as the Bank of Tanzania, Tanzania Revenue Authority, and the National Identification Authority. Plans are underway to integrate 30 insurance companies into the system in the near future.

On average, 15 new insurance products have been approved annually. Between January and June 2025 alone, 10 new products were cleared for the market, including those tailored for agriculture and livestock.

Retention rates have also improved. For general insurance, retention has risen from 55.9 percent in 2021 to 58.5 percent in 2024, while life insurance retention has inched up from 85.9 to 86.2 percent over the same period.

The number of insurance policy users has grown to between 35 and 37 percent of the population. The sector’s master plan aims to increase this to 50 percent by 2030, a target seen as achievable through the rollout of innovative products that address diverse public needs.

Despite the progress, challenges remain. These include the absence of a national insurance policy, lack of affordable agricultural insurance schemes, low uptake among the wider population, and limited access to products and services.

“To address these issues, we are working closely with stakeholders to raise awareness, expand access, and develop inclusive and affordable solutions,” Dr Saqware said.