Tira targets to have half the population with insurance cover by 2028
Half of the country’s population should be covered by some sort of insurance by 2028, Tanzania Insurance Regulatory Authority said.
Commissioner of Insurance, Dr Baghayo Saqware said in Dar es Salaam last week that as the country focuses on industrialization, insurers should be open for new investments and business to cover a wider population.
Dr Saqware said the country is now set for new regulations and directives on cash and carry as well as minimum rates which will enhance the market and companies will now have to compete on factors other than price.
“Agricultural insurance is one of the key sectors of investment that insurers should be striving venture into immediately,” Dr Saqware said.
“Insurers in the country believe agriculture is too risky to cover because smallholder farmers face challenges such as climate change, insecure land ownership and difficulties in accessing capital and farm inputs,” he underlined.
Dr Saqware said the country is now set for new regulations and directives on cash and carry as well as minimum rates which will enhance the market and companies will now have to compete on factors other than price.
“Agricultural insurance is one of the key sectors of investment that insurers should be striving venture into immediately,” Dr Saqware said.
“Insurers in the country believe agriculture is too risky to cover because smallholder farmers face challenges such as climate change, insecure land ownership and difficulties in accessing capital and farm inputs,” he underlined.
Yogesh Manek who is Chairman of MAC Group also supported TIRA’s vision saying now is the right time to invest in general insurance in line with the advancing technology and peoples’ changing needs.
“It’s high time that insurers should work to increase penetration, serve with integrity and reach to as many customers as possible, depending on their needs,’’ said Manek who also chairs the board of directors of Strategis Insurance (Tanzania) Limited.
About a week ago, SITL, the first private specialist health insurer to be registered in Tanzania and licensed by Tira in 2002, became the latest insurer to have decided to venture in the general insurance business.
The SITL’s move means that Tanzanians are wishing to be covered by a private insurer in all aspects; motor insurance, fir, fidelity cover, goods in transit, marine cover, burglary and professional indemnity, among others.
SITL’s Chief Executive Officer, Kain Mbaya said his company comes at a time when the insurance market is more challenging than ever because competition is high.
“Our focus now is the niche market in various segments of the economy,” said Mbaya who emphasised that his company is ready to compete for space in the local and regional markets.
He said there is increased price competition among insurers although the market has not been growing rapidly, most of the insurers have been competing for the same customers that are available.
Mbaya pointed out that governments in developing countries have been increasingly involved in the support of commercial agriculture insurance scheme in recent years.
A striking example is China, where, with support (and premium subsidies) from the central and provincial governments, the agricultural insurance market grew dramatically to become the second largest market in the world (after the United States) in 2008, studies show.
Mbaya said the provision of agri-insurance still faces challenges in terms of availability of inclusive data on the agricultural products but it can still be implemented given the available market out there.
“We are now working with the ministries dealing with finance and agriculture to come up with a comprehensive database that can guide us to achieve the implementation of agri-insurance,’’ the SITL’s CEO noted.
The government of Tanzania now seeks to increase insurance penetration ratio and uptake, with agricultural insurance being part of the plans.
“It’s high time that insurers should work to increase penetration, serve with integrity and reach to as many customers as possible, depending on their needs,’’ said Manek who also chairs the board of directors of Strategis Insurance (Tanzania) Limited.
About a week ago, SITL, the first private specialist health insurer to be registered in Tanzania and licensed by Tira in 2002, became the latest insurer to have decided to venture in the general insurance business.
The SITL’s move means that Tanzanians are wishing to be covered by a private insurer in all aspects; motor insurance, fir, fidelity cover, goods in transit, marine cover, burglary and professional indemnity, among others.
SITL’s Chief Executive Officer, Kain Mbaya said his company comes at a time when the insurance market is more challenging than ever because competition is high.
“Our focus now is the niche market in various segments of the economy,” said Mbaya who emphasised that his company is ready to compete for space in the local and regional markets.
He said there is increased price competition among insurers although the market has not been growing rapidly, most of the insurers have been competing for the same customers that are available.
Mbaya pointed out that governments in developing countries have been increasingly involved in the support of commercial agriculture insurance scheme in recent years.
A striking example is China, where, with support (and premium subsidies) from the central and provincial governments, the agricultural insurance market grew dramatically to become the second largest market in the world (after the United States) in 2008, studies show.
Mbaya said the provision of agri-insurance still faces challenges in terms of availability of inclusive data on the agricultural products but it can still be implemented given the available market out there.
“We are now working with the ministries dealing with finance and agriculture to come up with a comprehensive database that can guide us to achieve the implementation of agri-insurance,’’ the SITL’s CEO noted.
The government of Tanzania now seeks to increase insurance penetration ratio and uptake, with agricultural insurance being part of the plans.
