TIRA encourages innovation to boost nationwide insurance adoption

DODOMA: TANZANIA’S life insurance sector is quietly transforming into one of the fastest-growing pillars of the country’s financial industry.

For years, life insurance was largely seen as a niche product, primarily serving corporate clients and salaried employees. Today, the market is attracting a wider mix of customers, thanks to digital access, regulatory reforms and insurers’ renewed focus on serving everyday Tanzanians.

New data from the Tanzania Insurance Regulatory Authority (TIRA) show that the life insurance segment maintained strong growth in 2024, expanding by 17.6 per cent as gross written premiums (GWP) rose to 309.0 billion/- from 262.7 billion/- in 2023. Experts attribute this sustained rise to a maturing market, where trust, awareness and convenience are finally aligning to support longterm growth.

The market continues to be anchored by Group Life Insurance, which generated 263.9 billion/-, accounting for 85.4 per cent of total life premiums—up from 218.7 billion/- the previous year. Individual Life Insurance contributed 45.1 billion/- (14.6 per cent), slightly higher than 44.0 billion/- in 2023.

While still modest, the individual segment is beginning to expand as insurance awareness grows beyond formal employment circles. Industry observers highlight this shift as a critical turning point. More self-employed individuals and informalsector workers are starting to recognise insurance as a financial safety net rather than a luxury reserved for large companies.

This sentiment is reinforced by steady sectoral growth, averaging 21.6 per cent annually over the past few years. Claims data suggest that the market is settling after a volatile period. Total claims in 2024 reached 86.4 billion/-, marginally up from 85.1 billion/- in 2023. Of this, insurers paid 74.2 billion/-—85.8 per cent of claims—down 7.0 per cent from payouts a year earlier.

Group Life accounted for 64.4 billion/-, or 86.9 per cent, of total disbursements. The moderation follows a spike in payouts between 2020 and 2022 due to Covid-19, when claims jumped from 68.6 billion/- to 122.2 billion/-.

This disruption prompted insurers to rethink product design and risk models, laying the foundation for today’s stability. Despite the growth, the market remains highly concentrated.

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Dar es Salaam alone generated 289.0 billion/-, representing 93.7 per cent of life premiums. Unguja Magharibi contributed 5.5 billion/- (1.8 per cent), and Mwanza 2.0 billion/- (0.7 per cent), with the rest of the regions collectively bringing in 12.0 billion/-. This geographic dominance reflects the capital’s economic weight but highlights persistent penetration gaps in rural and semi-urban Tanzania.

TIRA’s report recommends expanding outreach via digital channels, strengthening agency networks, and offering microinsurance solutions tailored to lowincome communities. Insurers’ future growth will hinge on understanding and adapting to the financial realities of everyday Tanzanians.

Jubilee Life Insurance Corporation CEO Helena Mzena emphasised the need for innovation, saying, “Insurers must be innovative and look beyond traditional clients. They should understand what customers want, especially targeting entrepreneurs like small-scale food vendors.”

She added that the sector must invest in inclusive innovation, customer education and rural outreach while collaborating with TIRA and other stakeholders to create a regulatory environment that supports micro-entrepreneurs. Veteran insurer Smaa Issa echoed this view, urging insurers to partner with banks, SACCOS, mobile network operators, and informal-sector groups such as bodaboda and daladala associations.

She noted, “People in rural areas earn seasonal incomes, so rigid monthly premiums may not work. We need flexible payment models and simple policy terms in Kiswahili to build understanding and trust.” Ms Issa stressed that mobile data analytics will be key to designing products aligned with actual earning patterns. From the banking side, Equity Bank Tanzania Head of Bancassurance Joseph Makingi highlighted the transformative potential of linking insurance with mobile money platforms.

“Partnerships with mobile money providers will make premium collection easier and improve customer experience,” he said. “It also builds convenience and efficiency, especially for people outside the formal financial system.” He added that expanding branch networks into rural areas would boost trust and accessibility, enabling more people to engage with insurance services where they live and work.

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The Tanzanian life insurance industry is at a pivotal moment. With digital adoption, regulatory support, and innovative product design, insurers are poised to extend coverage far beyond traditional clients. Group Life Insurance remains dominant, but the emerging individual segment demonstrates the market’s capacity for inclusion. The sector’s challenge is clear: bridge the urban-rural divide, adapt to informal and seasonal income patterns, and create policies that resonate with the broader population.

By focusing on mobile technology, flexible premiums, and financial literacy, industry leaders like Helena Mzena, Smaa Issa and Joseph Makingi are reshaping insurance into a tool for everyday Tanzanians. As the market matures, life insurance is no longer a corporate luxury; it is becoming an accessible, practical safety net, crucial for financial resilience across the country