TIRA brings insurance closer to Pemba

ZANZIBAR: INSURANCE is increasingly becoming an important component of economic and social development, providing individuals, businesses and institutions with protection against financial losses arising from various risks.

As economic activities expand and livelihoods become exposed to a growing range of risks, access to reliable insurance services is becoming increasingly important for households and businesses alike.

In Tanzania, efforts to deepen insurance penetration have increasingly focused on bringing services closer to the people, improving public awareness and strengthening consumer protection.

This approach has now taken a significant step forward in Pemba, following the establishment of the Tanzania Insurance Regulatory Authority (TIRA) Regional Office, which is expected to make insurance services more accessible to residents and businesses across the islands.

The new office, officially launched at Karafuu House in Chake Chake, represents more than the opening of another government office.

It is part of a broader effort to strengthen the presence of insurance regulation at the local level and ensure that people can access information, regulatory services and support without having to depend entirely on offices located outside Pemba.

The office was officially launched by Zanzibar’s Second Vice-President, Hemed Suleiman Abdulla, who said its establishment will make it easier for residents, businesses and institutions in Pemba to access insurance services.

He also urged TIRA to intensify insurance education, particularly in rural areas, so that more people can understand the role of insurance and participate in the sector.

“The government continues to create a conducive environment for the financial sector, including insurance, to grow and contribute to economic development and the well-being of the people. Therefore, TIRA must ensure that insurance education reaches the people even in rural areas, so that they can have a better understanding of insurance matters,” Mr Abdulla said.

The call is significant because increasing access to insurance is not only about having insurance companies and products available.

It also depends on whether potential customers understand what insurance is, the risks it covers, how policies work and where to seek assistance when problems arise.

For many people, particularly those engaged in agriculture, fishing, small businesses and other economic activities, unexpected losses can directly affect household income and business continuity.

Insurance can provide a mechanism for managing some of these risks, provided that suitable products are available and people have adequate knowledge to make informed decisions.

The opening of the Pemba regional office therefore creates an opportunity for TIRA to take insurance education and regulatory services closer to communities whose economic activities are closely linked to sectors exposed to different forms of risk.

TIRA Commissioner of Insurance, Dr Baghayo Saqware said the establishment of the office formed part of the Authority’s strategy to bring services closer to the public while strengthening supervision of the insurance industry across the country.

The office is expected to improve access to insurance education, strengthen consumer protection, facilitate registration and supervision of insurance service providers and enable the Authority to respond more promptly to challenges and complaints related to insurance services.

Effective regulation requires not only national policies and systems but also a presence that enables regulators to understand the realities faced by consumers and service providers across the country.

For residents of Pemba, having TIRA officials within closer reach could make it easier to seek clarification on insurance policies, report concerns, obtain information about providers and understand their rights as consumers.

The office could also strengthen engagement between the regulator, insurance companies, businesses, financial institutions and other stakeholders operating in Pemba.

“TIRA will continue to work closely with the Revolutionary Government of Zanzibar, insurance companies and other stakeholders to ensure that the people of Pemba have access to insurance products and services that meet their needs across various sectors, including agriculture, fishing, business, health and property,” Dr Saqware stressed.

The Pemba office also comes at a time when Tanzania’s insurance sector has recorded considerable expansion.

According to Dr Saqware, the number of insurance service providers increased from 800 in 2019 to 2,444 in 2025.

The number of insurance users also increased from 8.4 per cent in 2019 to 38.6 per cent in 2025, representing an increase of more than 30 percentage points over the five-year period.

Formal employment in the insurance sector increased from 3,189 in 2019 to 7,206 in 2025, while the sector’s contribution to the country’s Gross Domestic Product (GDP) rose from 1.55 per cent in 2019 to 2.11 per cent in 2025.

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TIRA has set a longer-term target of increasing the contribution of insurance to GDP to five per cent by 2050, a target that will require continued expansion of the market, greater public understanding and stronger participation across the country.

Dr Saqware said TIRA will continue to implement its responsibilities efficiently, professionally and with patriotism to strengthen the delivery of quality services to stakeholders and the public, achieve the Authority’s objectives and contribute to the implementation of Dira 2050 (Tanzania’s Development Vision 2050).

The developments in Pemba form part of this wider national picture. Expanding the physical reach of the regulator can help create conditions for the sector to grow beyond major urban centres and reach communities engaged in productive activities across the country.

For Pemba’s business community, the office will similarly provide a closer regulatory link as enterprises seek to manage risks associated with their operations.

Agriculture, fishing, tourism, trade and property related activities all present opportunities for insurance providers to develop solutions tailored to the local economy.

When risks are better managed, households and enterprises will have greater capacity to recover from losses and continue their economic activities.

This can support stability at both household and business levels and, over time, contribute to broader economic activity.

TIRA’s expansion to Pemba is consequently a development that places accessibility at the centre of insurance regulation.

It brings the regulator closer to consumers while creating a platform for stronger engagement with insurance providers and other stakeholders.

TIRA’s Manager for Public Relations and Communications, Ms Hadija Maulid, said the expansion of the Authority’s presence to Pemba reflects its commitment to bringing insurance regulatory services closer to the people and ensuring that communities across the country are not left behind as the sector grows.

She said the establishment of the regional office will strengthen TIRA’s engagement with residents, businesses and institutions in Pemba by providing a closer platform for insurance education, consumer support and regulatory services.

According to Ms Maulid, the move is particularly important in improving public awareness of insurance and enabling consumers to better understand available products, their rights and where to seek assistance when challenges arise.

She added that expanding TIRA’s offices beyond major centres will also enable the Authority to better understand local insurance needs and work with insurers and other stakeholders to develop services that respond to the economic activities and risks facing communities in Pemba.

The emphasis on education is consistent with the broader direction of Tanzania’s insurance sector.

The National Insurance Inclusive Strategy (NIIS) 2024- 2030 is anchored in the country’s long-term development frameworks, including Dira 2050.

Its integration into national development priorities reflects an approach that places insurance within the wider socioeconomic development agenda rather than treating it as a standalone financial service.

Speaking during the official launch of the strategy in Dar es Salaam, Dr Saqware described the NIIS as an important milestone in the pursuit of inclusive growth.

The strategy emerged from collaboration among government institutions, regulators, private-sector players, development partners and civil society organisations, with a common focus on expanding access to risk protection.

It also builds on earlier reforms, including the Microinsurance Regulations of 2013, while aligning with the Financial Sector Development Master Plan 2020/21–2029/30 and the National Financial Inclusion Framework III.

The strategy recognises that a single unexpected event such as illness, crop failure or property damage can push households and businesses into serious financial hardship.

It, therefore, seeks to address vulnerabilities through a coordinated approach aimed at expanding insurance coverage and improving resilience among households and businesses.

One of the strategy’s key pillars is customer-centred product development, particularly solutions designed around the needs of underserved and low-income groups.

For smallholder farmers, for example, microinsurance products can provide protection against climate-related risks such as droughts and floods.

Health microinsurance can help families manage medical expenses without falling into poverty.

Such products become more meaningful when consumers understand them and can easily access them.

This is why public education remains an important part of the insurance expansion agenda. The same principle of taking insurance information closer to the people is visible in TIRA’s participation in the Nanenane Agricultural Exhibitions.

At its exhibition booth at Nzuguni grounds in Dodoma, TIRA has been providing farmers, professionals, entrepreneurs and other visitors with information about insurance products and how they can protect lives, businesses and productive activities against different risks.

Among those who benefited from the education was engineer Sylvester Msindo, who said information about engineering insurance gave him a new understanding as he prepared to establish his own company.

He said he had previously not understood how engineering insurance could be part of protecting an investment from the early stages of a business’s establishment.

The experience illustrates why insurance education can be as important as the availability of insurance products.

Similarly, farmers visiting the TIRA booth have been receiving information about agricultural insurance, including how it can help protect against losses arising from drought, floods, crop and livestock diseases and other risks affecting production.

Some farmers reportedly said they had not previously known that insurance services were available for agriculture until they visited the TIRA exhibition booth.