Insurance
From The Report: Tanzania 2018
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While Tanzania’s insurance premiums have increased over the past year, elevated competition has affected underwriting profits. Larger players may welcome an agenda of wholesale regulatory reform as a basis for more sustainable growth, but many insurers with lower levels of capitalisation face an uncertain period, as legislation is given an overhaul and more stringent requirements are established. Nevertheless, the country’s considerable population and low insurance penetration rate make it one of the most promising markets in the region over the long term. This chapter contains a viewpoint with Baghayo Abdallah Saqware, Commissioner, Tanzania Insurance Regulatory Authority.

Articles from this Chapter

Overview

Premium potential: New regulatory framework expected to boost income growth
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While Tanzania’s insurance industry premiums have increased over the past year, elevated competition has affected underwriting profits. An agenda of wholesale regulatory reform may be welcomed by the larger players as a basis for a more sustainable market, but many insurers with lower levels of capitalisation face an uncertain period, as legislation is given an overhaul and more stringent requirements are established. Nevertheless, the country’s considerable population and low insurance…

Viewpoint

Safeguarding a nation: Baghayo Abdallah Saqware, Commissioner, Tanzania Insurance Regulatory Authority (TIRA), on removing barriers
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Viewpoint:Baghayo Abdallah Saqware, Commissioner, Tanzania Insurance Regulatory Authority (TIRA) There are currently 31 insurance companies in Tanzania, and as the regulator of the sector we do not necessarily see the need for consolidation. Insurance companies have expressed, however, that there are significant barriers to consolidation, including the application of the 18% value-added tax (VAT). There is a charge on signed premiums, but none are levied when premiums are paid out or collected.…

Analysis

Bridging the gap: Mobile money operators open up market to low-income segment
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Brokers have played a dominant role in the distribution of insurance products since the birth of the modern sector. In important lines, such as accident, fire and aviation, they account for over 70% of underwriting activity, according to the Tanzania Insurance Regulatory Authority (TIRA). Many Tanzanian insurers rely on their relationships with local brokers for the bulk of their business, a dependency which costs them considerable sums in commission. As with insurers across the globe, finding…