Govt targets higher life insurance uptake
DODOMA: THE government has intensified efforts to expand life insurance coverage across the country, saying low uptake continues to limit the insurance sector’s contribution to economic growth and long-term investment.
The Tanzania Insurance Regulatory Authority (TIRA) aims to increase the insurance sector’s contribution to Gross Domestic Product (GDP) to three per cent by 2030 through improved public awareness, innovation and wider access to insurance services.
Speaking during the launch of Alliance Life Assurance Limited’s new Life Insurance Sales Office in Dodoma, TIRA Manager for Planning and Research, Mr Edger Shao, said many Tanzanians still have limited understanding of life insurance despite its significant economic and social benefits.
Representing the Commissioner of Insurance, Dr Baghayo Saqware, Mr Shao said expanding insurance coverage will strengthen financial resilience, mobilise long-term investment capital and support sustainable national development.
“As Tanzania continues to industrialise and build a modern economy, the role of the insurance sector becomes increasingly important,” he said. He explained that insurance protects individuals, families, businesses and investments against unforeseen risks while boosting investor confidence and economic stability.
Mr Shao noted that insurance companies also provide an important source of long-term capital through investments in government securities, infrastructure projects, construction and other strategic sectors of the economy.
He urged insurance companies to invest in technology, product innovation, staff development and public education to increase public confidence and expand insurance penetration.
“The future growth of the industry will depend on the ability of insurance companies to build public trust and provide quality products that respond to customers’ needs,” he said.
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He encouraged Tanzanians to regard life insurance as a long-term financial investment rather than an unnecessary expense, noting that it provides security for families and businesses during unexpected events. Mr Shao reaffirmed TIRA’s commitment to strengthening the legal and regulatory framework to support sustainable growth of the insurance industry while safeguarding policyholders’ interests.
He said opening Alliance Life Assurance’s new office in Dodoma would improve access to life insurance products and support government efforts to increase financial inclusion.
Alliance Life Assurance Chief Executive Officer Mr Byford Mutimusakwa said the company will continue partnering with government institutions, financial institutions and businesses to expand insurance awareness across the country.
