Unguja.Zanzibar. People’s Bank of Zanzibar (PBZ) has launched a bancassurance service as part of its efforts to increase the inclusion of more communities in the formal financial system.
The government targets in its Financial Strategy to ensure that 80 percent of Tanzanians have sufficient understanding of insurance services, with 50 percent actually using insurance services by 2030.
Deputy insurance commissioner, Ms Khadija Said, praised the bank for the step, stating that the service will help accelerating the delivery of insurance services in the isles as well as nationwide.
“This initiative is very important to the government as it supports the implementation of the ten-year financial strategy (2020-2030), which aims to deepen the insurance penetration,” she said, urging the bank to continue providing more education to citizens about the importance of insurance services.
Ms Said called on financial institutions in the country to continue collaborating with various insurance companies to collectively facilitate the accessibility of the service.
PBZ managing director Arafat Haji said the introduction of the service which has all approvals from the Tanzania Insurance Regulatory Authority (Tira) and the Bank of Tanzania (BoT), is part of the bank’s strategy to continuously improve its services, with the intention of creating a one-stop shop.
“This product will be provided through all PBZ branches in the country, in collaboration with various insurance companies, as authorized by Tira. PBZ customers can now access insurance services and other financial services, such as obtaining loans for insurance premium financing, at a competitive level,” he said.
The bank’s director of business, Mr Eddie Mhina, listed the insurance companies involved in this programme as Zanzibar Insurance Corporation (ZIC), National Insurance Corporation (NIC), Alliance Life, Jubilee Insurance, Strategis Insurance, and Metro Life Assurance.
“The launch of this program comes at a time when PBZ is continuously excelling in our digital services, and thus being recognized as one of the financial institutions effectively implementing the vision of BoT in achieving an inclusive digital economy and transitioning towards a less cash-dependent economy,” added Mhina.
According to Mhina, the bank’s goal is to eliminate inconvenience for customers by adding several value additions to the insurance service, including easy access to reporting claims, convenience in registering new insurance policies where customers will receive digital notifications for the expiry of their policies, and receiving close support in renewing insurance policies.
Share this news
This Year's Most Read News Stories
Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
Rare megamouth shark found in Zanzibar for the first time – why so little is known about it
The recent sighting was only the sixth time a megamouth had ever been found off the coast of Africa.Continue Reading
Ali Hassan Mwinyi, Former President of Tanzania, Dies at 98
Ali Hassan Mwinyi, a schoolteacher turned politician who led Tanzania as its second post-independence president and helped dismantle the doctrinaire socialism of his predecessor, Julius K. Nyerere, died on Thursday in Dar es Salaam, the country’s former capital. He was 98.Continue Reading
