Tanzania’s insurance market grows by 19.11 percent

CRDB Insurance Co Ltd, which entered the market two years ago, demonstrated remarkable growth, increasing its GPW from Sh1.8 billion to Sh26.8 billion.
 Speaking to The Citizen, insurance specialist Jumanne Mbepo said: “The growth rate is a positive sign, but it remains below the 22 percent target needed to achieve and attain a 5 percent insurance premium-to-GDP penetration by 2030.”
 Mr Mbepo emphasised that the expansion of new insurance companies had widened market reach and solutions.
 “CRDB Insurance has emerged as the fastest-growing company, while Jubilee Life, a pioneer in individual life products, has grown by more than 50 percent,” he said.

He also pointed to the increasing demand for Islamic insurance called Takaful, indicating a previously untapped market for Islamic insurance solutions.
 “We have seen notable growth in life insurance, rising by around seven percent in 2023, driven by an increased uptake of both individual and group products, spurred by the entrance of new companies,” he added.
 Acclavia Insurance Brokers & Risk Consultants managing director, Dr Anselmi Anselmi, expressed optimism about the sector’s trajectory, citing economic stability and regulatory support as key drivers. He projected that Tanzania’s insurance market could soon reach the Sh2 trillion mark.
  Dr Anselmi stressed the need for targeted interventions, including inclusive insurance, digital distribution, and regulatory incentives, to accelerate the market’s expansion.
 “To achieve this target, we need strategic interventions in key economic sectors and regulatory support to catalyse the necessary growth towards a Sh10 trillion premium volume,” he explained.
  He also credited President Samia Suluhu Hassan’s leadership for creating a conducive investment climate, stating: “The President has opened up the country, attracting investors and driving economic projects that have directly benefitted the insurance industry. Without new projects, insurance would struggle to grow.”
  Industry experts have proposed various strategies to boost the insurance sector, including strengthening public-private partnerships (PPPs) to enhance insurance uptake. 
They also advocate for tax incentives on life and health insurance premiums, the removal of Value Added Tax (VAT) on general insurance, and the enforcement of new mandatory insurance regulations. These include compulsory fire insurance for public buildings and marine insurance for water vessels, including pontoons.
  With these measures in place, stakeholders remain confident that Tanzania’s insurance sector will continue its upward trajectory, contributing more significantly to economic development.