TIRA promotes insurance inclusion for strong financial protection

THE country’s insurance industry is undergoing a significant transformation, driven by the Tanzania Insurance Regulatory Authority (TIRA) through the National Inclusive Insurance Strategy (NIIS), aimed at expanding access to risk protection.

This reform agenda positions insurance as a vital instrument for safeguarding lives, livelihoods, and assets against economic, social, and environmental shocks that continue to affect communities across the country. As the sector regulator, TIRA is playing a central role not only in shaping policy direction but also in driving a broader vision aimed at making insurance services accessible, affordable and relevant to all Tanzanians.

Particular focus is being placed on populations that have historically been excluded from formal financial systems, including low-income households, rural communities and those operating within the informal economy.

This strategic push comes at a time when global and domestic uncertainties are intensifying, prompting the government to reaffirm its commitment to sustainable development, vulnerability reduction and the strengthening of financial resilience among citizens. Within this framework, inclusive financial systems, especially insurance are increasingly recognised as essential tools for managing risks ranging from health emergencies and natural disasters to agricultural losses and income disruptions.

The NIIS (2024–2030) is firmly anchored in Tanzania’s long-term development frameworks, including Development Vision 2050 and the Third Five-Year Development Plan (FYDP III). Its integration into these national priorities reflects a deliberate shift toward embedding insurance within the broader socio-economic development agenda, rather than treating it as a standalone financial service.

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Speaking during the official launch of the strategy in Dar es Salaam, TIRA Commissioner of Insurance, Dr Baghayo Saqware, emphasised that the NIIS represents a major milestone in the country’s pursuit of inclusive growth. He noted that the strategy is the result of extensive collaboration among key stakeholders, including government institutions, regulators, private-sector players, development partners and civil society organisations, all united by the common goal of expanding access to risk protection.

Dr Saqware further explained that the NIIS builds on earlier reforms such as the Microinsurance Regulations of 2013, while aligning with other critical frameworks like the Financial Sector Development Master Plan (2020/21– 2029/30) and the National Financial Inclusion Framework III.

For many Tanzanians, a single unexpected event such as illness, crop failure, or property damage can trigger severe and long-lasting financial hardship. The NIIS seeks to address this vulnerability through a coordinated and comprehensive approach aimed at expanding insurance coverage and improving the overall resilience of households and businesses.

In doing so, the strategy identifies several structural challenges that have historically limited the growth of inclusive insurance in Tanzania including low levels of product innovation, limited consumer awareness, weak distribution channels, regulatory constraints and insufficient institutional capacity.

Additional barriers such as poor stakeholder coordination, inadequate financing, and low levels of trust in insurance services have also contributed to low uptake.

By clearly outlining these challenges, the NIIS provides a well-informed and evidencebased roadmap for reform. One of its key pillars is the promotion of customer-centric product development by involving designing insurance solutions that reflect the real needs and circumstances of different population segments, particularly those in underserved and lowincome groups.

Microinsurance products tailored for smallholder farmers protect against climaterelated risks such as droughts and floods, while health microinsurance schemes enable families to manage medical expenses without falling into poverty.

By aligning insurance products with the actual risk profiles of target groups, the strategy seeks to enhance their relevance and drive wider adoption. Improving access through innovative distribution channels is another major focus area.

Traditional insurance delivery models have often struggled to penetrate rural and informal markets due to high operational costs and logistical barriers. To overcome this, the NIIS encourages the use of digital platforms and mobile technology to provide insurance services more efficiently and at lower cost.

The integration of insurance products with mobile money systems, which are already widely used across Tanzania, is expected to significantly expand coverage and simplify access. This approach leverages existing financial infrastructure to bridge the gap between insurers and underserved populations. At the same time, regulatory strengthening remains a critical component of the strategy.

The Authority is working to create an enabling environment that supports innovation while ensuring consumer protection and market stability.

Efforts in this area include enhancing compliance through the integration of insurance providers into the TIRA Management Information System (TIRA-MIS), as well as introducing policy measures such as tax incentives to stimulate product development and investment. Alongside regulatory reforms, the NIIS places strong emphasis on financial literacy and consumer empowerment.

Through targeted education campaigns and outreach initiatives, the strategy seeks to build public trust in insurance and equip individuals with the knowledge necessary to make informed financial decisions. Special attention is being directed toward women, youth and persons with disabilities to ensure that inclusion efforts are equitable and impactful.

The implementation framework of the NIIS is structured around three main strategic pillars including policy and regulatory strengthening, market development and innovation, and financial literacy and consumer empowerment.

The pillars are reinforced by cross-cutting priorities such as gender inclusion, rural outreach and climate risk management, reflecting a comprehensive and holistic approach. To ensure effectiveness, the strategy incorporates robust monitoring, evaluation, and learning mechanisms.

These systems are designed to track progress, identify emerging risks, and support adaptive management throughout the implementation period. The COI added that collaboration remains at the heart of the NIIS. Recognising that no single institution can achieve these ambitious objectives alone, TIRA is actively fostering partnerships across both the public and private sectors.

Government agencies, insurance companies, development partners, and communitybased organisations all play critical roles in driving implementation. Public-private partnerships, in particular, are expected to stimulate innovation, mobilise investment and create sustainable business models for inclusive insurance. Financing is another key consideration underpinning the strategy.

A diverse mix of funding sources is being explored to support implementation, including government allocations, donor contributions, private sector investments, and innovative financing mechanisms. Instruments such as disaster risk bonds and climate finance are also being considered, aligning Tanzania’s insurance sector with global efforts to address climate change and enhance resilience.

According to TIRA’s Manager for Public Relations and Communications, Hadija Maulid, the strategy is guided by core principles that emphasise inclusivity, transparency, accountability and responsiveness. These principles draw on global best practices while remaining firmly grounded in Tanzania’s unique socio-economic context.

As the country continues its journey toward middle-income status, the importance of insurance in supporting economic stability and social protection is becoming increasingly evident. The NIIS positions inclusive insurance not merely as a financial product, but as a powerful tool for building resilience, reducing poverty and enabling sustainable development.

By protecting individuals and businesses from financial shocks, insurance empowers them to invest, grow and participate more actively in the economy. Ultimately, the successful implementation of the National Inclusive Insurance Strategy is expected to mark a turning point for the sector, transforming it into a more inclusive, dynamic and resilient system that serves the needs of all Tanzanians.