Africa-Press – Tanzania. THE Government has pledged to continue to play an enabling role to ensure that access to insurance products and services is widened and deepened across the country.
The pledge came at a time when the insurance subsector is expected to grow from the current penetration of 0.6 per cent to about 5 per cent of the GDP by the year 2030.
The government plans that insurance sector to at least cover 50 per cent of Tanzania’s adult population in next nine years as per the Financial Sector Development Master Plan for 2020-2030.
The Tanzania Insurance Regulatory Association (TIRA) Commissioner of Insurance, Dr Musa Juma, said the government would work with stakeholders to ensure that the insurance sector is developed in order to contribute its required share to the economy.
“The authority together with Insurance players must ensure there is an increased insurance penetration which will enhance the Insurance sector‘s contribution to the National Income. I am reliably informed that currently approximately 15 per cent of Tanzania’s adult population has access to insurance services,” Dr Juma said on behalf of Minister for Finance and Planning.
The Commissioner made the remark recently in Dar es Salaam, during the first Annual Insurance Distribution Channels Convention, that the extension of insurance coverage to the uncovered population is a reward that the industry can make not only to the national economy but also to the public at large.
The industry plays its role in ensuring the public is availed with necessary information about Insurance; and therefore, the industry should work with TIRA to create public awareness and education on insurance membership.
“I hope this will ensure effective capitalizing on alternative distribution channels and emerging technologies such as digital business platforms and mobile payment systems to offer insurance products and services to our population,” he explained.
Dr Juma said creativity, technology and partnership would be appropriate distribution channels in reaching the new markets, something expected from the insurance players.
He mentioned that Life Insurance was continuing to be a potential driver of economic growth and development of the country.
“Also, there is a need to mobilize domestic savings and investment, create employment and ensure the wellbeing of our people,” he added.
The Insurance Sector needs to make it possible for the local insurance market to increase its capacity in retaining and absorbing more risks internally rather than offloading them to foreign markets.
African College of Insurance and Social Protection (ACISP), Chairman, Dr Baghayo Saqware said the aim of the convention was to come up with a technique to increase the scope of access to insurance and its contribution to government revenue.
He said the Insurance Subsector was expected to grow from the current penetration of 0.6 per cent to about 5 per cent of the GDP by the year 2030.
Dr Saqware said among the targets to be attained, systemic inclusive insurance development challenges must be addressed spurring across the areas of capacity building and human resources, distribution and inclusive health and agricultural insurance solution.
This year’s insurance theme is “Challenges and Opportunities in Insurance Distribution Channels”.
The convention organized by African College of Insurance and Social Protection (ACISP) and in collaboration with member Association of Tanzania Insurers (ATI), Tanzania Insurance Brokers Association, Bancassurance, Mobile Network Operators (MNOS), Development Partners, Tanzania Insurance Regulatory Authority (TIRA) and the Ministry of Finance and Planning, Capital Market Players and pension Funds and Academicians.
