TIRA advances insurance reform with research, innovation network

DAR ES SALAAM: TANZANIA’s insurance sector stands on the brink of a profound transformation, facing the dual challenges of adapting to an increasingly complex risk environment and meeting the growing expectations of diverse consumers.

This transformation is harnessed through the Research, Innovation and Development Strategy (RIDeS), a bold and forward-looking blueprint launched by the Tanzania Insurance Regulatory Authority (TIRA).

RIDeS aim to reposition the insurance industry toward sustainable, inclusive and technology-driven growth by leveraging innovation, research and collaborative partnerships at an unprecedented level.

At its core, the strategy seeks to ensure that insurance services are not only efficient and competitive but also accessible and relevant to all Tanzanians, particularly those in underserved and vulnerable segments.

Speaking during the launch of the Financial Sector Forum 2026, alongside the unveiling of the RIDeS and the National Inclusive Insurance Strategy (NIIS), recently in Dar es Salaam, TIRA’s Commissioner of Insurance, Dr Baghayo Saqware, underscored the importance of research and innovation in shaping the future of the industry.

He noted that RIDeS aim to increase the use of research in planning and decisionmaking processes while promoting the development of innovative products, services and delivery systems.

Dr Saqware said that the strategy is intended to create an enabling environment that supports sustainable growth, enhances efficiency and strengthens competitiveness across the sector.

He further explained that the strategy responds directly to changes in the economic, social and technological landscape, saying that as risks become more complex and customer needs more diverse, the industry must be agile enough to adapt and provide solutions that are both practical and forward-looking.

He added that by strengthening research capacity and encouraging innovation, RIDeS seeks to ensure that insurance providers are better equipped to meet the evolving demands.

“A key aspect of the strategy is its emphasis on collaboration. The successful implementation of RIDeS will depend on strong partnerships among regulators, insurers, technology providers, research institutions and consumers,” Dr Saqware said.

According to the RIDeS report, this multi-stakeholder approach is critical in fostering an environment where new ideas can be developed, tested and scaled effectively. It also ensures that innovation is guided by real market needs and aligned with broader development goals.

To support this collaborative effort, a well-defined governance structure has been established, including the Thematic Working Group (TWG) for the insurance subsector, which provides strategic and operational oversight, as well as the National Insurance Research, Innovation and Development Committee and its Secretariat, responsible for technical coordination and implementation.

Such a structure is essential in ensuring accountability, coherence and efficiency in executing the strategy. The strategy also recognises the importance of creating a supportive regulatory environment that encourages experimentation while safeguarding consumer interests.

Through initiatives such as regulatory sandboxes and innovation hubs, insurers will have the opportunity to develop and test new products and business models in a controlled setting.

This approach not only promotes creativity but also ensures that new solutions meet required standards before being introduced to the market.

Innovation is particularly critical in addressing emerging risks such as climate change, pandemics and economic uncertainties. Traditional insurance models may not always be sufficient to respond to these challenges, making it necessary to explore alternative solutions such as parametric insurance and usage-based products.

These innovations have the potential to improve efficiency, reduce costs and extend coverage to populations that have traditionally been excluded from formal insurance systems.

Equally important is the strengthening of research and development to support evidence-based decision-making. By investing in market studies, consumer behaviour analysis and risk modelling, stakeholders can gain valuable insights that inform product design and policy reforms.

The dissemination of research findings through public forums, workshops and policy briefs will further ensure that knowledge is translated into practical action, benefiting both the industry and the wider economy.

Another critical component of RIDeS is the integration and enhancement of data management systems.

Reliable, timely and accessible data is essential for effective risk assessment, pricing, fraud prevention and regulatory oversight.

The strategy therefore prioritises the modernisation of data infrastructure, the establishment of industry-wide standards and the promotion of secure data-sharing protocols. At the same time, strong emphasis is placed on cybersecurity and data protection to build trust and ensure compliance with national and international regulations.

At the centre of the strategy is a commitment to developing customer-centric and inclusive insurance products. This involves designing solutions that reflect the real needs of diverse customer groups, particularly those who have historically been underserved.

These include smallholder farmers, informal sector workers and low-income households, many of whom face significant barriers in accessing insurance services. By addressing these challenges, RIDeS will expand coverage and improve financial protection across the population.

Strategic partnerships will play a vital role in achieving this objective. By working with government agencies, non-governmental organisations, development partners and private sector actors, insurers can leverage existing networks and resources to reach a wider audience.

This collaborative approach is especially important in extending services to remote and underserved areas, where traditional distribution channels may be limited.

Consumer protection is another key focus area under RIDeS. A strong and transparent framework is essential in building public confidence and ensuring that policyholders are treated fairly.

This includes clear communication, efficient claims processes and mechanisms for addressing grievances. Strengthening consumer protection not only benefits customers but also enhances the credibility and sustainability of the industry.

Through targeted education and awareness programmes, the strategy seeks to empower individuals with the knowledge needed to make informed decisions and appreciate the value of insurance as a tool for risk management.

Dr Saqware said that the successful implementation of RIDeS is expected to bring significant improvements in the availability and quality of insurance services.

He noted that there will be increased access to products in key areas such as health, agriculture, motor vehicles and infrastructure, supported by innovation and technology. These services are expected to be more affordable, accessible and aligned with customer needs, contributing to a more inclusive insurance landscape.

Speaking on long-term vision and sustainability strategy, TIRA’s Manager for Public Relations and Communications, Hadija Maulid said that by 2030 the successful implementation of the RIDeS is expected to position Tanzania’s insurance industry as a regional leader in digital transformation and financial inclusion.

She said that the vision is supported by clear targets, including increasing insurance penetration to at least five per cent of GDP and ensuring that 90 per cent of Tanzanians have access to insurance awareness programmes.

Ms Maulid further said that the strategy aims to achieve full integration of advanced technologies such as artificial intelligence, blockchain and mobile-based microinsurance models.

She noted that the strategy will continue to foster a regulatory environment that encourages continuous innovation and healthy competition, adding that through proactive collaboration, ongoing regulatory modernisation and sustained investment in digital capabilities, Tanzania’s insurance market is set to achieve sustainable growth, strengthen consumer trust and enhance its competitiveness on the global stage.