DAR ES SALAAM: THE growth of the insurance market in the country has continued to increase with premiums generally rising by 7.4 per cent, from 1.15tri/- in 2022 to 1.24tri/- in 2023.
Speaking during the launch of the 2023 Insurance Market Performance Report in Dar es Salaam on Friday, Deputy Minister for Finance, Hamad Hassan Chande said that the report provides a clear picture that the government through Tanzania Insurance Regulatory Authority (TIRA) is working hard to build strong relationships and anenabling environment for insurance service providers.
According to the report released by TIRA, the total insurance registration has increased by 30.4 per cent, from 201.3bn/- to 262.5bn/-.
“These achievements have been made after TIRA implemented insurancerelated matters outlined in the 2029/2030 financial sector development plan, the five-year development plan for 2021/2022 to 2025/2026 and the ruling party’s 2020 to 2025 election manifesto,” Minister Chande said.
He said the plans focus on three key areas including building public awareness and interest in insurance. Mr Chande insisted that TIRA should continue to create insurance products that meet market needs and establish systems for handling claims and customer complaints.
“TIRA in collaboration with other authorities should continue strengthening strategies for developing the insurance sector by improving digital systems,” he added.
Zanzibar’s Chief Secretary and Chairperson of the insurance ambassadors in the country, Engineer Zena Ahmed Said stressed on the need to promote Takaful insurance so that Muslims can join based on their beliefs.
Earlier, presenting the report summary, TIRA’s Commissioner of Insurance, Dr Baghayo Saqware said that the number of insurance providers had increased by 33 per cent, from 1,165 in 2022 to 1,549 in 2023.
Dr Saqware also noted that employment in the insurance sector had increased by 34.1 per cent, from 4,173 in 2022 to 5,595 in 2023, which reflects the growth in employment within the insurance market and the expansion of insurance providers in the country.
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He further said that insurance assets in the country had increased by 26.8 per cent, while investment assets grew by 9.3 per cent, from 1.17 tri/- in 2022 to 1.28tri/- in 2023.
“Claims paid have increased by 25.5 per cent, from 389bn/- in 2022 to 488.2bn/- in 2023,” he said. The TIRA’s boss also mentioned that retention in the country’s insurance sector had shown a different trend between general insurance and life insurance, adding that for general insurance, the retention rate had increased from 49.4 per cent in 2022 to 55.5 per cent in 2023, which is an increase of 12.3 per cent.
“This indicates that domestic insurance companies have the capacity to absorb risks and reduce dependence on foreign insurance companies,” he added.
On the other hand, retention in life insurance decreased from 85.7 per cent in 2022 to 83.2 per cent in 2023, showing a reduction of 2.9 per cent, which requires strengthening of strategies in that area,” he added.
Similarly, Dr Saqware said that the insurance sector continues to be an important part of Tanzania’s economic growth, with the sector’s contribution to the country’s Gross Domestic Product (GDP) increasing to 2.01 per cent in 2023, compared to 1.99 per cent in 2022.
“This increase reflects the steady development of the sector and its importance in supporting the economy,” he said.
