ZANZIBAR: ZANZIBAR President Hussein Mwinyi has called on insurance providers in the country to innovate and develop affordable insurance products that can be widely accessed by all citizens.
Dr Mwinyi made the call on Thursday when he officiated at the function held to release the 2023/2024 Tanzania Insurance Market Performance Report, saying expanding insurance coverage would contribute to economic growth for both individuals and the nation.
In 2023, the insurance market in Tanzania grew by 7.4 per cent, with its contribution to the national GDP rising from 1.99 per cent in 2022 to 2.01 per cent in 2023.
Investment levels in the sector also saw a significant increase.
President Mwinyi commended stakeholders for the remarkable growth of Zanzibar’s insurance market.
According to 2023/2024 statistics, insurance claim payouts doubled, rising from 4.3bn/- in 2022 to 8.7bn/- in 2023.
Similarly, the number of insurance policyholders increased from 32,894 in 2022 to 44,879 in 2023.
“This is clear evidence that insurance services in Tanzania are expanding and remain in high demand. We must continue raising awareness and offering products that meet people’s needs,” he said.
Dr Mwinyi told the gathering the critical role of the Tanzania Insurance Regulatory Authority (TIRA) in ensuring proper oversight and timely settlement of claims.
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He expressed optimism that the growing number of insurance providers would enhance industry efficiency and consumer trust.
The Tanzania and Zanzibar governments, he added, remain committed to economic development through transformative reforms across all sectors and that to attract investors, the government is creating an enabling business environment with favourable policies.
In his speech, Dr Mwinyi highlighted several key initiatives to improve the insurance sector, including finalising the National Insurance Policy to provide a comprehensive framework for insurance across all sectors.
Others are establishing a Professional Insurance, Social Security and Actuarial Board to oversee and regulate insurance professionals; enhancing technology adoption, product innovation and public awareness campaigns to increase insurance penetration are other initiatives.
He also directed research on risk factors that require government asset insurance coverage, along with reviewing insurance laws and regulations to align with current economic and industry developments.
Zanzibar Minister of State in the President’s Office for Finance and Planning, Dr Saada Mkuya Salum, urged insurance firms to expand market reach and increase insurance uptake to drive national economic growth.
Presenting the Tanzania Insurance Market Report, Commissioner of Insurance, Dr Baghayo Saqware said that the sector has been experiencing steady growth, with the number of policyholders rising from 17 million in 2022 to 23 million in 2023.
The expansion contributed to an increase in GDP share from 1.99 per cent in 2022 to 2.01 per cent in 2023.
Meanwhile, Chairperson of Tanzania Insurance Ambassadors, Engineer Zena Ahmed Saidi, called for the establishment of Takaful (Islamic insurance) regulatory authorities and public education on the benefits of Islamic insurance services.
She said that the rapid growth of the insurance sector in Tanzania signals a promising future, but further innovation, regulation and public awareness remain crucial in ensuring that insurance services reach a broader population and contribute to national prosperity
