Insurance dispute resolutions rise amid awareness
DAR ES SALAAM: THE number of insurance-related disputes resolved by the Tanzania Insurance Ombudsman (TIO) has risen sharply in recent years, reflecting increased public awareness of available dispute resolution mechanisms and a more proactive approach by consumers in safeguarding their insurance rights.
The Tanzania Insurance Ombudsman (TIO) resolved 145 insurance disputes during the 2024/25 financial year, up from 115 cases in 2023/24, representing a 30-case increase, according to Ombudsman Ms Margaret Mngumi. She attributed the rise to greater public awareness of the ombudsman’s role, which was established in 2015 as an alternative channel for resolving insurance-related complaints.
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“More people now know there is an independent institution to turn to when dissatisfied with insurance company decisions, particularly regarding claims,” Ms Mngumi said.
She noted that many disputes stem from misunderstandings or limited knowledge of insurance policies and procedures. “Often, once we explain the terms and processes, complainants leave satisfied,” she added.
Established under the Insurance Act of 2009, the TIO offers mediation and arbitration as an alternative to the court system for claims of up to 40m/-, with compensation awards capped at 15m/-.
The office investigates complaints and issues binding decisions, aiming to strengthen public trust in the insurance sector by ensuring fairness and accountability.
The ombudsman operates from TIRA headquarters and maintains regional offices in Dar es Salaam, Dodoma, Mwanza, Arusha, Mbeya, Katavi, Tabora, Lindi, Unguja and Pemba, providing an efficient, accessible and affordable alternative to courtbased dispute resolution.
Meanwhile, Tanzania’s insurance sector continues to expand rapidly. The number of insurance service providers rose by 26.5 per cent to 1,741, reflecting growing public confidence and market demand, according to Deputy Commissioner of Insurance, Ms Khadeija Said.
She noted that the growth is driven by regulatory reforms, improved awareness, and increased uptake of insurance products. She added that the number of policyholders and insurance beneficiaries rose by 10.2 per cent to 25.9 million Tanzanians, while total gross insurance premiums increased by 20 per cent to 1.52tri/-.
The insurance sector’s contribution to the national economy has also strengthened, with its share of Gross Domestic Product (GDP) rising to 2.08 per cent, representing a 3.4 per cent increase. During the same period, claims paid amounted to 545.3bn/- up by 11.7 per cent, reflecting improved efficiency and growing public trust in insurance institutions.
Investment assets grew by 9.9 per cent to 1.41tri/- while employment in the sector expanded by 15.05 per cent to 6,434 jobs. “These figures demonstrate a sector that is not only growing, but also becoming more resilient and responsive to the needs of citizens,” she said.
