TIRA calls for greater media role in promoting insurance awareness

MWANZA: MEDIA outlets across the country have been urged to play their integral role of informing the public about economic and insurance-related developments, both regionally and nationally to highlight their economic benefits.

Speaking to the Daily News in Mwanza recently, TIRA’s Lake Zone Manager, Mr Richard Toyota insisted on the importance of increased media involvement in raising awareness about the insurance sector nationwide.

According to Mr Toyota, the 2023 annual insurance market report, which was officially released in November, indicates significant progress in the sector over the years, although its overall contribution to the national economy remains modest.

“Our contribution to national insurance revenues is still small, approximately four per cent. That’s why we need media intervention to better reflect the true size of our sector,” he explained.

Mr Toyota highlighted that between 2011 and 2013, the insurance sector’s contribution to Tanzania’s GDP was between 0.5 and 0.6 per cent. By 2023, the figure had increased to 2.02 per cent, showing steady growth.

He further noted that public awareness on insurance matters has grown significantly, with 50-60 per cent of Tanzanians now possessing a basic understanding of insurance operations as of 2023.

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In terms of performance, Mr Toyota praised the resilience and expansion of Tanzania’s insurance market in 2023, which showed consistent growth across various segments, including general insurance, life insurance and external business.

The total Gross Premiums Written (GPW) in 2023 increased by 7.4 per cent, reaching 1.24tri/- compared to 1.15tri/- in 2022.

Over the past five years (2019–2023), the sector has maintained an average growth rate of 10.4 per cent, underscoring its robust performance and growing contribution to the national economy.

Breaking down the market composition, Mr Toyota pointed out that general insurance accounted for the largest share of the total GPW in 2023, contributing 950.3bn/-, 76.6 per cent of the total premiums. Life assurance followed with 262.7bn/-, or 21.2 per cent, while locally reinsured risks from outside the country amounted to 27.3bn/-, or 2.2 per cent.

He also detailed the growth within the general insurance sector, with gross premiums written rising to 950.3bn/- in 2023, compared to 895.1bn/- in 2022.

“This growth reflects increasing consumer engagement and greater awareness of various insurance products,” he added.

These investments include substantial allocations in government securities (228.1bn/-) and deposits in financial institutions (336.1bn/-), indicating a strong liquidity position and commitment to long-term financial stability.

In terms of capital and reserves, Mr Toyota reported that the sector’s capital and reserves stood at 450.7bn/- in 2023, up from 425bn/- in 2022.

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“This solid capital base supports the sector’s ability to underwrite new policies and absorb potential losses, reinforcing market stability and insurer solvency,” he explained.

For the Lake Zone specifically, the GPW figures reflect positive growth. In 2021, the zone’s total GPW stood at 40bn/-, which rose to 47bn/- in 2022. In 2023, the zone’s GPW reached 57bn/-.