TIRA ensures safety with licensed insurers

DAR ES SALAAM: INSURANCE plays a vital role in protecting individuals and businesses from financial shocks, but that protection is only guaranteed when policies are issued by legally licensed and financially sound providers.

In Tanzania, as economic activity expands and investment grows, insurance is increasingly becoming an important financial safety net. It helps individuals and businesses recover from losses caused by accidents, disasters, illness and other unforeseen events while supporting broader economic stability.

To ensure this protection remains reliable and trustworthy, the Tanzania Insurance Regulatory Authority (TIRA) has intensified oversight of the sector by enforcing licensing requirements for all insurance service providers operating in the country.

According to the regulator, any insurance service provider operating without a valid licence is in violation of the provisions of the Insurance Act, Cap 394, which governs insurance activities in the country. The Act gives the Tanzania Insurance Regulatory Authority (TIRA) the authority to regulate the sector, issue licences to qualified service providers and enforce compliance with the law.

The move is part of the Authority’s broader strategy to ensure that all players in the insurance industry operate legally, responsibly and in a manner that protects consumers.

TIRA is responsible for regulating, supervising and developing the country’s insurance industry. Among its key functions is registering and licensing insurance service providers, including companies, brokers, agents and other intermediaries . Licensing ensures that only qualified and financially sound institutions operate in the market, with applicants required to have adequate capital, sound management structures and compliance with regulatory guidelines before they are authorised to offer services to the public.

Beyond licensing, TIRA also supervises the insurance sector by issuing regulatory guidelines and monitoring the conduct of insurance providers. This supervision ensures that service providers operate within legal and professional standards.

Another major responsibility of the Authority is protecting the interests of consumers and beneficiaries of insurance services. By enforcing strict regulatory requirements, TIRA aims to ensure that customers receive fair treatment and reliable compensation when claims arise.

The Authority also contributes to the development of the insurance sector by promoting innovation, encouraging wider insurance coverage and advising the government on policy issues related to insurance.

Licensing is one of the most important regulatory tools used by TIRA to maintain order and credibility in the insurance sector. It helps create a controlled environment where insurance companies and intermediaries operate under clear rules and standards.

In Tanzania, insurance service providers are required to renew their licences every year in order to maintain their legal status and continue offering services to the public.

The annual renewal process allows the regulator to evaluate whether service providers still meet the standards required to operate in the industry. These standards may include financial stability, compliance with regulatory requirements and the ability to honour insurance claims.

If a service provider does not renew its licence, it loses the right to operate and must stop offering insurance services until the licence is renewed.

TIRA has made it clear that insurance providers whose licences have expired must stop conducting all insurance activities until their licences are renewed.

TIRA’s Commissioner of Insurance, Dr Baghayo Saqware emphasised that renewing licences is a legal requirement designed to protect both insurance providers and consumers.

He explained that the licensing process ensures that insurance service providers are officially recognised by law and authorised to operate in the market.

According to Dr Saqware, the requirement for licence renewal is not simply an administrative formality but an essential legal process that ensures service providers continue to meet the standards required in the industry.

He noted that compliance with licensing requirements contributes to transparency and accountability within the insurance sector.

“Renewing licences is a legal procedure that benefits both those who sell insurance and those who purchase insurance services,” Dr Saqware said.

He explained that when insurance providers renew their licences, they demonstrate that they meet the regulatory conditions required to continue operating legally.

However, when a service provider fails to renew a licence, it may indicate that the provider no longer satisfies the criteria required to offer insurance services.

Dr Saqware further explained that one of the key requirements for licensing insurance providers is to have a sufficient capital.

This requirement is crucial because insurance companies must have the financial capacity to compensate clients when insured events occur.

Insurance operates on the principle of risk protection. Individuals and businesses purchase policies with the expectation that they will receive compensation when illness, accidents, disasters or losses occur.

If an insurance provider does not have adequate financial resources, it may fail to settle claims, leaving customers vulnerable to financial hardship.

Dr Saqware cautioned that unlicensed insurance providers may lack the necessary capital required to compensate policyholders. He therefore urged members of the public to avoid purchasing insurance services from providers who are not licensed by TIRA.

According to the Commissioner, dealing with licensed insurers provides greater assurance that clients’ interests will be protected.

Dr Saqware also encouraged the public to adopt the habit of verifying whether insurance service providers have valid licences before purchasing any insurance product.

He noted that such awareness can help prevent members of the public from falling victim to unlicensed operators.

“I urge members of the public to develop the habit of verifying that service providers are licensed before purchasing insurance services in order to avoid dealing with unlicensed providers,” Dr Saqware emphasised.

By taking the time to confirm whether an insurance provider is licensed, consumers can ensure that they are dealing with legitimate companies that operate under regulatory oversight.

How the public can verify insurers

In a statement, TIRA’s Manager for Public Relations and Communications, Hadija Maulid explained that the Authority has made it easier for consumers to confirm whether an insurance provider is licensed.

Members of the public can access a list of licensed insurers and service providers through TIRA’s official website.

They can also verify the registration numbers issued by TIRA through the Tanzania Insurance Regulatory Authority Management Information System (TIRAMIS) digital platform, which provides up-to-date information about insurance service providers operating in the country.

In addition, members of the public may visit the nearest TIRA office if they require further assistance in verifying the legitimacy of insurance providers.

Ms Maulid emphasised that verifying licences is an important step toward protecting consumers and ensuring that insurance services are provided by legitimate companies.

While warning against illegal operations, the Authority has also encouraged insurance service providers to renew their licences promptly in order to continue operating legally.

Ms Maulid advised service providers who may be experiencing challenges during the renewal process to contact TIRA for assistance. She noted that the regulator is committed to supporting industry players who are willing to comply with regulatory requirements.

Ensuring that all service providers maintain valid licences will help create a level playing field within the industry and promote fair competition.

TIRA has urged the public to always verify that insurance providers hold valid licences before purchasing any policy. By dealing only with licensed insurers and reporting suspicious operators, consumers can protect themselves from financial loss while helping strengthen transparency and accountability across the insurance industry.