Life insurance sector sustains steady growth

DAR ES SALAAM: THE life insurance sector has continued its upward trajectory last year, reflecting strong growth and expanding its contribution to the country’s financial landscape.

The latest data from the 2024 Annual Insurance Performance Report released by Tanzania Insurance Regulatory Authority (TIRA) shows the sector recorded a 17.6 per cent increase in gross written premiums (GWP), underscoring sustained confidence and market expansion.

According to TIRA’s 2024 Annual Insurance Performance Report, the life insurance business recorded GWP of 309bn/- last year, up from 262.7 bn/- in 2023.

This represents a 17.6 per cent year-on-year growth, supported by rising public awareness, regulatory reforms and ongoing digital transformation in the insurance industry.

Over recent years, the sector has maintained an impressive average annual growth rate of 21.6 per cent, pointing to continued expansion, stronger competition and greater product diversity for policyholders across the country.

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The last year portfolio was dominated by group life insurance, which accounted for 263.9 bn/- equivalent to 85.4 per cent of total premiums compared to 218.7 bn/- in 2023 while Individual Life Insurance contributed 45.1 bn/- or 14.6 per cent, up slightly from 44.0 bn/- in the previous year.

This confirms that group life remains the primary driver of the country’s life insurance business, while the individual segment continues to grow steadily. During the same period, the life insurance market recorded total claims amounting to 86.4 bn/-, a marginal increase from 85.1 bn/- in 2023.

Of this, 74.2 bn/- or 85.8 per cent, was paid out representing a 7.0 per cent decline compared to 79.7 bn/- paid in 2023. Group Life accounted for the largest portion of paid claims, totaling 64.4 bn/- equivalent to 86.9 per cent of total disbursements.

Between 2020 and 2022, payouts for claims and policyholder benefits rose sharply from 68.6 bn/-to 122.2 bn/-.

This spike was largely attributed to the effects of the COVID-19 pandemic, which triggered an increase in medical, life and related insurance claims.

In terms of market distribution, out of the total GWP of 309.0 bn/- recorded in 2024, Tanzania Mainland accounted for 303.0 bn/-, while Zanzibar contributed 6.0 bn/.

At the zonal level, Dar es Salaam dominated the market with 289bn/-, representing 93.7 per cent of total life insurance premiums followed by Unguja’s Urban West, which contributed 5.5 bn/- (1.8 per cent) and Mwanza, with 2.0bn/- (0.7 per cent).

The remaining 12bn/- (3.9 per cent) was generated from other regions across the country.