Zep-Re now mulls Tanzania office

Dar es Salaam. After investing over $29 million approximately (Sh73 billion) in the Tanzanian market over the past decade, ZEP-RE (PTA Reinsurance Company) is contemplating establishing a local office to better serve its customers and foster employment opportunities for Tanzanians.

The current investment in the Tanzania market is part of the company’s core mandate of developing reinsurance in the region, ensuring premiums get retained in local markets it has allocated funds across various Tanzanian institutions, including fixed deposits, unlisted equities, and government securities.

Despite the investment, the total claims paid out over the same period exceeded $40 million (Sh102 billion), moreover and command a reinsurance market share equivalent to 12.9 percent of Tanzania's reinsurance premium, having also disbursed commissions totalling $32.5 million Sh82.5 billion) to the Tanzanian market during the same timeframe.

Speaking to stakeholders at the corporate Iftar event yesterday, Tanzania's country manager, Mr Issa Kissongo, said negotiations regarding the establishment of an office in Tanzania are ongoing, with hopes that they will reach a fruitful conclusion soon.

He said highlighted the rapid growth of the insurance sector in Tanzania and the significant untapped potential, adding working closely with customers is more important for business.

“For a decade, we have contributed to the Tanzanian economy our objective is to further accelerate the growth of this industry and meet its target of expanding the user base of insurance products by 2030,” he said.

In addition to its economic contributions, it has been actively involved in providing training initiatives aimed at enhancing knowledge and expertise within the Tanzanian insurance landscape. “We thank the government for continuing to support us.”

Speaking at the event, Commissioner for Insurance Dr Baghayo Saqware emphasized the government's current focus on three key areas agricultural insurance, universal health insurance, and data systems calling upon the company to contribute by developing products tailored to these sectors.

Dr Saqware highlighted Zep Re's extensive experience and expertise, particularly in designing data systems to handle claims efficiently and combat fraud, underscoring the importance of such systems in addressing market challenges effectively.

He noted that the insurance industry is actively implementing reforms and rebuilding as part of President Samia Suluhu Hassan's agenda of 4Rs and assured the investors of the government's readiness to provide necessary support to facilitate industry revitalization.

On the other hand, the company’s chief underwriting officer, Mr Bernard Katambala, emphasized Tanzania's immense growth potential, attributing its significance to the country's large population, making it a pivotal market for their investment endeavors.

Mr Katambala highlighted the growing population in various sectors, particularly in agriculture, where insurance coverage is increasingly essential, “We are in collaboration with an organization here in Tanzania to tailor insurance products suitable for the agricultural community's needs.”

Meanwhile, the chairman of the Association of Tanzania Insurers (ATI) Mr Khamis Suleiman, expressed concerns about sustained losses in the engineering sector, often pointing fingers at insufficient support from insurance companies.