Tira plans quota for women on insurance firms’ boards

Arusha. The Tanzania Insurance Regulatory Authority (Tira) is preparing new rules that will require insurance companies to include a minimum number of women in decision-making positions, in a move aimed at expanding insurance use and increasing women’s participation in the financial sector.

Commissioner of Insurance, Dr Baghayo Saqware, said the authority is finalising a circular that will direct insurers to ensure women are represented on company boards so that products better reflect the needs of female clients. He said the measure is part of efforts to meet a national target under which women are expected to account for 50 percent of insurance users by 2030.

Dr Saqware made the remarks during a session titled Chat with the Regulator: Regulation, Innovation and Inclusion – Advancing Women’s Participation in Tanzania’s Financial Sector at a conference organised by the Tanzania Women in Finance Association (Tawifa).

He said women have the potential to expand the insurance market if given more access to education, capital and leadership opportunities.

“We will borrow a leaf from the Bank of Tanzania, which issued a similar circular in the banking sector and achieved good results. We are preparing a related initiative to increase women’s participation in decision-making positions in insurance companies,” he said.

Dr Saqware noted that high capital requirements remain a barrier preventing many women from establishing insurance firms, forcing most to work as agents, which requires less capital.

He said the regulator is encouraging insurers to design products tailored to women and will give priority to proposals that support inclusion.

“We also encourage women to form groups so that we can explore ways of allowing them to establish companies. This is not common, but we are looking at options to support greater participation,” he said.

He added that Tira will continue providing training to women agents to help them move into brokerage and company ownership.

According to a report by Financial Sector Deepening Trust (FSDT), insurance coverage in Tanzania stood at about 10 percent in 2023, with no significant difference between men and women, largely because health insurance is often purchased at household level.

FSDT Inclusive MSME Finance Manager, Ms Safarani Seushi, said insurance is especially important for women because many work in informal sectors, where income is unstable and exposure to financial shocks is higher.

She said insurance helps protect assets, supports business growth and reduces the risk of families falling into poverty.