Tanzania’s insurance industry eyes regional gains

DAR ES SALAAM: FROM protecting family savings and safeguarding businesses to cushioning economies against unexpected shocks, insurance is steadily emerging as a vital pillar of financial security.

Now, as Tanzania’s insurance market expands and regional economies seek closer financial integration, the country’s chief insurance regulator has secured a leadership role that could help shape the future of the industry across Southern Africa.

The Commissioner of Insurance and Chief Executive Officer of the Tanzania Insurance Regulatory Authority (TIRA), Dr Baghayo Saqware was elected Vice-Chairperson of the Committee of Insurance, Securities and NonBanking Financial Authorities (CISNA) of the Southern African Development Community (SADC) on October 7, this year, during the committee’s 49th forum meeting in Malawi.

His election places Tanzania in a stronger position to contribute to regional discussions on insurance development, financial supervision and cooperation in non-banking financial services, at a time when businesses face increasingly interconnected risks and demand for financial protection continues to grow.

Dr Saqware secured the position after two candidates contested the post, with representatives of SADC member institutions participating in the vote. He will serve alongside CISNA Chairperson Dr Grace Muradzikwa, Commissioner of Zimbabwe’s Insurance and Pensions Commission.

Beyond the recognition attached to the appointment, its significance lies in the opportunity to translate regional cooperation into stronger insurance markets, improved consumer protection and wider access to financial services.

Tanzania’s insurance industry has recorded growth across several indicators between 2022 and 2025, according to figures provided for the period, reflecting an expanding market and increasing use of insurance services.

Registered insurance service providers increased from 1,165 to 10,940, while insurance penetration rose from 1.99 per cent to 2.11 per cent of gross domestic product (GDP). Insurance density, which measures average insurance premiums per person, climbed from 18,706/- to 37,455.39/-.

The number of people using insurance services, including policyholders and beneficiaries, grew from 17.8 million to 26.8 million. The proportion of the population using insurance services also increased, from 27.6 to 39.3 per cent.

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These developments occurred during Dr Saqware’s tenure as Commissioner of Insurance, alongside contributions from the government and other industry stakeholders. For insurers, brokers, investors and technology providers, the expansion presents opportunities to develop products that respond to the needs of households, businesses and productive sectors.

Agriculture, manufacturing, construction, transport, logistics and tourism are among the areas where insurance can protect valuable assets, cushion businesses against financial losses and support continuity when unexpected events disrupt operations. Yet, market expansion also brings greater responsibility.

As more people and businesses depend on insurance, effective supervision, appropriate products, policyholder protection and insurers’ ability to honour claims become increasingly important. The challenge, therefore, is not simply to grow the market, but to ensure that growth translates into reliable protection and lasting public confidence.

Under Dr Saqware’s leadership, TIRA has pursued digitalisation while supporting the implementation and strengthening of cash-andcarry arrangements and bancassurance, which allows banks to distribute insurance products to their customers. Retention and reinsurance frameworks have also provided a foundation for strengthening the capacity of domestic insurers and reinsurers to handle more business.

While greater domestic capacity can enable insurers to retain a larger share of risks locally, reinsurance remains essential for exposures that require additional financial backing. Dr Saqware’s stated leadership philosophy, “Excellence has no limit,” offers a guiding principle for the next phase of regulatory development.

The test will be whether policy initiatives and market expansion deliver more accessible products, efficient services and greater confidence among consumers. Technology could prove instrumental in achieving these goals. Digital distribution channels, electronic payments and more efficient claims processing can reduce barriers for customers who have limited access to conventional insurance services.

Small and medium-sized enterprises could benefit from simpler, affordable products, while farmers and agricultural businesses need solutions tailored to weather-related and other production risks. For households, accessible insurance can help cushion the financial impact of unexpected losses and expenses.

For companies, it can reduce the consequences of operational disruptions and provide greater confidence when investing in equipment, premises and expansion. CISNA provides a forum for insurance, securities and non-banking financial regulators across SADC to discuss supervisory standards, regulatory coordination and the development of regional financial markets.

Dr Saqware’s vice-chairmanship gives Tanzania an additional platform to share experience from its domestic market, while working with counterparts facing similar regulatory and industry challenges. Stronger cooperation could improve the exchange of supervisory knowledge, deepen understanding of regulatory requirements and help authorities address financial risks that cross national borders.

For financial services companies seeking to expand across the region, more consistent regulatory approaches could make compliance requirements easier to navigate. For investors and policyholders, transparent rules and credible supervision can strengthen confidence in the institutions responsible for managing financial risks. Cooperation could also encourage the development of insurance solutions for transport, tourism, agriculture and small businesses, including products addressing climaterelated risks and changing patterns of economic activity.

However, these benefits will not materialise automatically. Their realisation will depend on CISNA’s priorities, the commitment of member authorities to coordinate and the implementation of agreed measures within individual countries. Despite the progress recorded, Tanzania’s insurance penetration of 2.11 per cent of GDP in 2025 highlights the scope for further market development.

This has turned growth into wider financial inclusion. Expanding coverage will require affordable premiums, accessible distribution channels, greater public awareness, clear policy terms and timely claims settlement. Regulators, insurers, brokers, agents, banks and technology companies will need to work together to make insurance products relevant to customers and strengthen trust in insurance as a practical financial service rather than an unfamiliar expense.

A deeper insurance market can contribute to economic resilience by protecting household assets, helping businesses recover from losses and supporting investment through more effective risk management. For Tanzania, Dr Saqware’s new regional responsibility offers an opportunity to advance these priorities through closer engagement with SADC partners. It also places renewed focus on how regulatory leadership can support the development of an industry that serves both commercial interests and wider public needs.

Ultimately, the success of his appointment will be measured not only by Tanzania’s voice in regional financial discussions, but also by tangible improvements in market capacity, consumer protection and access to insurance.

For households seeking financial security and businesses looking to invest with greater confidence, the real promise of regional integration lies in making insurance more accessible, dependable and responsive to the risks of everyday life.