Insurance sector transforms rapidly in four years

TANZANIA: IN just four years, Tanzania’s insurance sector has transformed significantly, becoming essential for protecting lives, assets and public investments while also driving greater financial inclusion across the country.

At the centre of this evolution is the commitment of the sixth phase government under President Dr Samia Suluhu Hassan, which has championed a wide range of reforms to build a resilient, inclusive and technology-driven insurance system.

This transformation was the focus of a special engagement between the Tanzania Insurance Regulatory Authority (TIRA), Commissioner of Insurance Dr Baghayo Saqware and members of the media, during a meeting recently organised by the Treasury Registrar (TR) in Dar es Salaam.

Opening his address, Dr Saqware said that over the past four years, insurance has proven to be a silent but powerful engine behind Tanzania’s socio-economic growth. It protects national infrastructure, supports farmers, secures health systems and builds investor confidence.

Statistics over this period show increased penetration of insurance services, a rise in public awareness and notable growth in domestic insurance capacity and outcomes directly linked to governmentdriven reforms and regulatory innovations.

At the core of recent progress is the Universal Health Insurance Law, passed in 2023 and accompanied by operational regulations in 2024. Dr Saqware described the legislation as a major milestone in the history of country’s health and insurance systems.

This law mandates health insurance for every citizen, setting a foundation for universal health coverage (UHC), reducing out-of-pocket expenses and securing access to quality healthcare through sustainable risk pooling.

With this law, no Tanzanian should fall into poverty due to medical expenses. It’s a game-changer in how we approach public health.

Another key reform was the amendment of the Finance Act, 2022, which broadened the scope of mandatory insurance. Now, imported goods, public buildings, commercial properties, ferries and government infrastructure must all be insured with local insurance companies.

This strategic shift not only protects the country’s assets but also strengthens the domestic insurance market, ensuring that large premiums remain within the Tanzanian economy.

To address sector-specific vulnerabilities, Dr Saqware outlined the establishment of two important insurance consortia including Agricultural Insurance Consortium, that designed to protect farmers against climate risks and natural disasters and promote agricultural productivity.

Oil and Gas Insurance Consortium is aimed at securing investments and operations in the highly sensitive oil and gas industry.

One of the most transformative achievements highlighted was the digitisation of regulatory processes. TIRA has launched an online registration system allowing insurers and service providers to apply for and track licenses electronically, eliminating bureaucracy, reducing cost and ensuring faster service delivery.

TIRA’s Information Communication Technology systems have been integrated with key government agencies including the Bank of Tanzania (BOT), Tanzania Revenue Authority (TRA), National Identification Authority (NIDA), the Land Transport Regulatory Authority (LATRA) and Tanzania Shipping Agencies Corporation (TASAC) enabling real-time data exchange and enforcement of insurance compliance across sectors.

Digital tools are improving transparency, efficiency and public trust in the insurance industry. This is how we regulate in the 21st century.

In a deliberate move to support religious inclusivity, the government introduced Takaful Insurance Shariacompliant model catering to the needs of Muslims and others who seek faith-based financial services.

Alongside this, TIRA has intensified public awareness campaigns in collaboration with the private sector, targeting both urban and rural populations.

The Commissioner also commended the appointment of the National Insurance Board by the President, calling it a move that has enhanced policy oversight and provided a clear direction for the sector.

With experienced professionals on the board, the industry now benefits from technical guidance, oversight of market trends and support in navigating complex regulatory issues.

Speaking directly to the editors, Dr Saqware emphasised the media’s role in advancing public understanding of insurance, fighting misinformation and highlighting success stories that inspire trust.

He urged media houses to take an active role in communicating insurance reforms and explaining their benefits to everyday citizens.

As Dr Saqware concluded his address, he left no doubt that insurance sector is not only growing, it is maturing into a strategic tool for national protection, resilience, and empowerment.

With continued government support, regulatory innovation and stakeholder collaboration, the country is on a path to achieving broader financial protection for all.

Due to sound policies and strong leadership under the sixth phase government, the insurance sector in Tanzania has recorded significant progress from 2021 to this year.

According to recent data, the number of registered insurance service providers surged from 993 in 2021 to 2,425 by June 2025, marking a 144.2 per cent increase, an average annual growth of 22.1 per cent.

The number of Tanzanians benefiting from insurance services also rose sharply from 14.2 million in 2021 to 25.9 million in 2024, an 82.4 per cent jump.

Employment in the formal insurance sector nearly doubled during the period, growing from 3,527 jobs in 2021 to 6,916 by mid-2025, representing a 96.1 per cent increase.

The industry’s total asset base expanded from 1.277 tri/- in 2021 to 2.340 tri/- in 2024, representing 83.3 per cent growth (averaging 16.3 per cent annually). Sector capital also strengthened, growing by 103.7 per cent, from 416.0bn/- to 847.3 bn/-.

Gross written premiums rose from 911.5bn/- in 2021 to 1.418 tri/- in 2024, a growth of 55.6 per cent (11.7 per cent average per year). During the same period, claim payouts increased by 48.9 per cent, from 397.6 bn/- to 592.1 bn/-, highlighting the sector’s growing responsiveness to policyholders.

The contribution of the insurance sector to the national GDP grew from 1.68 per cent in 2021 to 2.01 per cent in 2023, with projections to reach 3 per cent by 2030.

General insurance retention rose from 55.9 per cent to 58.5 per cent and life insurance retention increased slightly from 85.9 per cent to 86.2 per cent.

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In terms of government revenue, the sector’s contribution through taxes such as Value Added Tax (VAT) and corporate income tax rose from 137.7 bn/- in 2022 to 183.1 bn/- in 2023, reflecting a 32.97 per cent increase.

These positive trends confirm the growing confidence in the insurance industry and its crucial role in economic development and financial inclusion.