Insurance regulator wins award as public performance rules shift

ARUSHA: THE insurance sector has received recognition for financial management as the government broadens how it measures the performance and value of public institutions.

The Tanzania Insurance Regulatory Authority (TIRA) was on Wednesday awarded second place among noncommercial public entities in the Best Financial Management Performance category, highlighting the growing emphasis on prudent use of public resources.

Vice-President Deogratius Ndejembi presented the award to Commissioner of Insurance Dr Baghayo Saqware during the 2026 Chairpersons and Chief Executive Officers of Public Institutions (C-CEOs) Forum at the Arusha International Conference Centre (AICC).

The C-CEOs Forum brought together board chairpersons and chief executives of public institutions and organisations under the theme, “High-Performing Public Enterprises for a Competitive, Inclusive and Resilient Economy in Implementing Vision 2050.”

The recognition comes as the government moves beyond measuring public institutions mainly by dividends and financial returns, placing greater emphasis on productivity, quality of services, efficient use of resources, financial resilience, innovation, technology adoption and competitiveness.

Treasury Registrar Nehemiah Mchechu said the assessment for the Best Financial Management Performance category considered efficiency in revenue collection and expenditure, as well as efforts by non-commercial public institutions to reduce dependence on government support.

He said institutions that performed well had demonstrated improved revenue collection, stronger expenditure controls, reduced dependence, improved surpluses and better liquidity, based on audited financial statements for the 2024/25 financial year.

The wider change in performance assessment is significant for the insurance sector because its contribution to the economy extends beyond the financial performance of the institutions directly involved in regulation.

Insurance provides a mechanism for households, businesses and investors to manage financial risks, helping protect assets, investments and economic activity from unexpected losses.

As Tanzania works towards the objectives of the National Development Vision 2050, the capacity to manage risks and maintain financial resilience will remain important to households and businesses participating in the economy.

Mr Mchechu said the government was therefore rethinking how it measures the performance of public institutions as the value of its investments continues to increase.

The value of government investments in public institutions and companies rose from 67.95tri/- in 2020/21 to 92.28tri/- in 2024/25, while non-tax revenue generated from those investments increased from 637.7bn/- to 1.327tri/- over the same period.

“The changes we are witnessing require us to rethink how we measure the performance of our public institutions and entities. We need to look at the value they create for the economy and society, not dividends alone,” Mr Mchechu said.

The new approach places financial management within a wider institutional performance framework.

For insurance regulation, this means that responsible management of public resources is linked to the ability of the regulator to carry out its mandate effectively and support the development of a stable insurance market.

The sector’s wider economic role also makes effective regulation important as businesses and individuals increasingly rely on insurance to manage risks associated with investment, property, transport, agriculture and other economic activities.

At the same time, the government is tightening expectations on public institutions that fail to deliver.

Mr Mchechu warned underperforming public entities to urgently improve their performance, saying persistent poor results could lead to tougher measures, including restructuring following a structured review process.

He also said institutions required to remit dividends and statutory contributions must do so on time because delays affect government revenue and ultimately the resources available for public development.

“Public entities do not belong to boards or management teams. They are public assets held in trust by the Government,” he said.

He cautioned institutions against borrowing money to finance dividend payments or statutory contributions, saying such practices could distort their actual financial performance.

However, he clarified that institutions would not be dissolved solely because of their performance on Gawio Day, explaining that the government first allows time for improvement before taking further action where meaningful progress is not achieved.

The shift towards a broader performance assessment comes as Tanzania seeks to align public investments with the ambitions of Vision 2050.

Under the emerging framework, public institutions are expected to demonstrate how effectively they use resources, the quality of services they provide and the value they create for the economy and society.

For the insurance sector, this creates a wider measure of performance than financial returns alone.

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It places equal attention on the institutional capacity required to support a functioning insurance market, promote financial resilience and respond to the changing needs of the economy.

The recognition for financial management therefore comes at a time when public institutions are being challenged to demonstrate value in multiple ways.