TANZANIA Insurance Regulatory Authority (TIRA) in collaboration with Bank of Tanzania (BoT) have launched Bancassurance regulations that will guide use of banks or financial institutions and insurers to distribute and market insurance products.
Speaking during the launch ceremony in Dar es Salaam, the Deputy Governor of Bank of Tanzania, Dr Yamungu Kayandabila urged all financial institutions in Tanzania to comply with new regulations so as to improve efficiency in their services.
Bancassurance, as the name suggests, is a mechanism by which banks or financial institutions and insurers collaborate to distribute and market insurance products.
Through the mechanism, a licenced bank or financial institution (“bancassurance agent”) enters into a contract (“bancassurance agency contract”) with a Tira-licenced insurer to sell the insurer’s products to its customer base in return for a commission on each lead closed.
The BoT Deputy Governor said the bancassurance regulations will be a true catalyst in the spread of insurance services in Tanzania adding that a huge population is yet to be reached here in Tanzania.
“These new regulations have come a bit late, so all stakeholders have every reason to consider them seriously for the benefits of service providers and the insured,” he said.
He further noted that if all stakeholders will consider them, the revenues in insurance sector will increase for the benefit of the nation, services providers and the customers. T
IRA Commissioner Dr Baghayo Saqware said the launching of new insurance regulations was meant to widen the scope of insurance services in Tanzania.