Dar dominates life insurance market, Urban West follows

DAR ES SALAAM: DAR ES SALAAM continues to cement its position as the country’s financial powerhouse, accounting for the overwhelming share of Tanzania’s life insurance market last year.

Latest figures from the Tanzania Insurance Regulatory Authority (TIRA) show that the commercial capital generated a staggering 289bn/- in life insurance premiums, representing 93.7 per cent of the nation’s total life insurance. In sharp contrast, Urban West region in Unguja recorded 5.5bn/- (1.8 per cent), while Mwanza contributed 2.0bn/- (0.7 per cent).

The remaining 12bn/- (3.9 per cent) was shared among other regions, pointing to slow but steady life insurance penetration in emerging urban centres and rural areas.

The figures were unveiled recently during the launch of the 2024 Insurance Performance Report in Njedengwa, Dodoma where key industry leaders called for greater innovation and collaboration to bridge the urban-rural insurance gap.

The 2024 Insurance Performance Report showed that Dar es Salaam’s strong showing reflects robust economic activity, it also reveals the need for insurers to deepen outreach and tailor products to rural and semi-urban populations particularly as digital platforms reduce barriers to access.

Jubilee Life Insurance Corporation Chief Executive Officer (CEO) Helena Mzena said during the recent report launch in Dodoma that it is important to tailor insurance products to meet the diverse needs of Tanzanians. “Insurers must be innovative and look beyond traditional clients.

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They (insurers) must understand what customers want especially targeting entrepreneurs like small-scale food vendors,” Ms Mzena said.

She said that as Dar es Salaam continues to dominate, the life insurance sector must now look beyond the commercial capital and focus on inclusive innovation, customer education and rural outreach strategies.

She also called for stronger collaboration between insurance companies, the regulator, TIRA and key industry stakeholders to create an enabling regulatory environment for traders such as small-scale food vendors.

Veteran insurer, Smaa Issa, said that insurers must work hand-in-hand with banks, Savings and Credit Cooperative Societies (SACCOS), mobile network operators and informal sector groups such as bodaboda and daladala associations to widen their footprint in underserved rural markets.

“People in rural areas earn seasonal incomes, so rigid monthly premiums may not work. We need more flexible payment models and clear policy terms in Kiswahili to ensure better understanding and trust,” she said.

She also advocated the use of mobile data analytics to design more affordable, realistic, and need-based products that reflect the income patterns of low-income earners.

Equity Bank Tanzania Head of Bancassurance Joseph Makingi said that partnerships with mobile money platforms will enable easy premium collections, increasing outreach and efficiency.

“Insurance companies must extend their branch networks to rural areas. Having physical presence there will make it easier for people to access insurance services,” said Makingi.