Revolutionising insurance with technology, partnerships

DODOMA: THE insurance sector is experiencing a profound transformation as technology advances and consumer expectations shift rapidly.

This evolution highlights an increasing demand for innovative solutions and greater inclusivity in providing insurance services.

The National Bank of Commerce (NBC), Managing Director, Mr Theobald Sabi underscored a transformative vision that positions technology, public awareness and strategic partnerships at the forefront of driving inclusive insurance services.

According to Mr Sabi, the integration of cutting-edge technology is not just a luxury but a necessity for the insurance industry.

“Technology,” he asserts, “is the linchpin that holds the future of insurance together.

It’s about making services more accessible, efficient and tailored to the needs of every individual.”

This perspective highlights a broader shift towards digital platforms that can break down traditional barriers and offer personalised solutions to a diverse range of customers.

Strategic partnerships further amplify Mr Sabi’s vision.

He identifies banks and mobile network operators as pivotal players in this ecosystem.

“By collaborating with banks and mobile network operators, we can extend our reach and enhance the accessibility of insurance services,” Mr Sabi, who is also Tanzania Bankers Association Chairman, said.

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This collaborative approach is designed to leverage the extensive networks and technological capabilities of these entities to deliver insurance solutions more efficiently and inclusively.

By harnessing technology, raising public awareness and forging meaningful partnerships, the NBC is set to redefine the insurance landscape and ensure that its benefits are within reach of all segments of society.

“With only 10 per cent of Tanzanians currently engaged in insurance [Fin scope, 2023], technology-driven solutions are essential to bridging this gap” he said.

The innovation goes beyond merely meeting customer needs; it also enhances product availability, strengthens distribution channels, curbs fraud and mitigates risks.

As of August 2023, Tanzania’s insurance sector contributed just 1.68 per cent to GDP, one of the lowest in the region.

The government and industry efforts boost the figure, aiming for 3.0 per cent by this year and 5.0 per cent by 2030 to meet global standards.

He identified low disposable incomes, limited savings culture, and negative perceptions as barriers to insurance growth.

To address these, he proposed increasing financial education and creating affordable insurance tailored to low-income groups.

He noted successful initiatives like Vodabima from Vodacom Tanzania and NIC Kiganjani from the National Insurance Corporation (NIC), which have shown that mobile-based insurance can expand access.

Mr Sabi also highlighted the importance of transparent claims processes and robust fraud management systems to build public trust and support the sector’s digitisation.

“With increased digitisation comes higher risk of cyber fraud, so strengthening risk and compliance is crucial,” he said.

Reflecting on NBC’s role, he said they are major player in the bancassurance sector, contributing 18.3 per cent of the market’s gross written premiums and driving 45.7 per cent of life insurance payments over the past four years.

As Chairman of the TBA, Sabi reaffirmed the association’s dedication to advancing the insurance sector in Tanzania. “Inclusive insurance is not just a possibility—it is an imperative.

By collaborating with banks, insurers, technology providers and the government, we can build a robust ecosystem that ensures insurance is accessible to all ‘wananchi’, regardless of their location or economic status,” he said.

NBC MD aired his view when addressing insurance industry stakeholders at the conclusion of the 2024 Insurance Day celebrations in Dodoma over the weekend.

Mr Sabi delivered a keynote speech titled “Inclusive insurance: Responsive products and distribution through technology.

The guest of honour at the event,Dr Dorothy Gwajima, Minister for Community Development, Gender, Women and Special Groups, said health insurance is a fundamental right that should be accessible to every citizen.

The government is committed to ensuring that all Tanzanians access to affordable health services as per the Universal Health Act.

Tanzania Insurance Commissioner, Dr Baghayo Saqware said the event was pivotal in building public trust in the insurance sector and encouraging the use of various insurance services.

“Insurance not only provides protection but also serves as a valuable investment,” the commissioner said.

The Chamwino District Commissioner, Ms Janeth Mayanja, said insurance education should continue to be provided to the public since it plays a vital role in the economic stability and social welfare.

“By ensuring that more citizens are covered, we are not only protecting their health and financial well-being but also promoting a culture of responsibility and preparedness,” she said.

In the country, insurance is becoming increasingly important as the country continues to grow and develop.

By understanding the benefits of insurance, individuals and businesses can make informed decisions to protect themselves and their assets.