Dar es Salaam. A new report from the insurance market shows that the market remained stable, with key indicators such as policyholders and beneficiaries increasing by 32.0 percent, alongside growth in claims and expanded employment opportunities.
The overall market grew by 7.4 percent, achieving Gross Premiums Written (GPW) of Sh1.24 trillion compared to previous years, the Tanzania Insurance Regulatory Authority (Tira) report for 2023 revealed.
The report indicated that the industry paid claims totalling Sh488.2 billion last year, accounting for 25.5 percent of premiums, up from Sh389 billion in earlier years.
It also showed that policyholders and beneficiaries represented 37.2 percent of the total population in the country covered by insurance services.
Read: Tanzania’s insurance industry grows by 26.7 percent
“The global insurance market’s growth is measured by parameters like claims payments, which reflect company stability, and employment, which indicates individual economic growth and contributions to national income. We will continue collaborating with stakeholders to educate the public and increase product usage,” said the Commissioner of Insurance, Dr Baghayo Saqware.
Dr Saqware made the remarks on Friday, November 22, 2024, during the official launch of the 2023 performance report, which highlighted that employment opportunities in the sector rose to 5,595 from 4,173 in previous years.
Additionally, the number of service providers grew to 1,549 from 1,165, representing a 33 percent increase.
Insurance retention also rose to 55.5 percent last year from 49.4 percent, meaning more money remained within the country to support economic development.
However, Dr Saqware noted that despite this positive growth, the amount Tanzanians allocate for insurance remains low, averaging Sh19,000 per year, compared to Sh200,000 in other developing countries.
He emphasised that more effort is needed to address this gap.
“To achieve the government’s goals, the market needs to grow at an average of 15 percent annually. Therefore, I urge stakeholders to continue collaborating and increasing investments that will enable the market to expand,” he stressed.
Launching the report, the Deputy Minister for Finance, Mr Hamad Hassan Chande, said the report is good news as it shows the right direction of the market, explaining that insurance is a part of the financial sector which contributes to the transfer of income to the government and helps in development activities.
He said the report gives a clear picture that the government, through Tira, is creating an environment for good business relations for stakeholders in the sector, this is from implementing insurance issues through the 2030 plan which wants consumers to reach 50 percent.
Mr Chande added that the growth of insurance is a big step, so there is a need to continue more efforts to get more revenue.
“The insurance industry plays a crual role in building the economy and protecting the health and safety of people, so growth must continue,” he said.
For her part, Assemble Insurance Tanzania Ltd, Managing Director Tabia Masoud said that for the insurance market to continue, they need to be given information on the development of the market and the presence of new challenges.
She said information on means of increasing their strength should also be communicated for the insurance industry to continue growing.
“For the insurance sector to continue to grow, innovations must be used to meet the needs of Tanzanians and all stakeholders in this sector,” she suggested.
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Tanzania: Exim to Raise Fund for Mental Health Facilities Upgrades
EXIM Bank to raise 300m/- over the next three years for financing essential services and infrastructure upgrades in mental health facilities.
The bank’s Head of Marketing and Communications Stanley Kafu unveiled this when introducing Exim Bima Festival 2024 as a platform for bringing together individuals, organisations and various sectors for raising the funds.
“Exim’s initiative aligns with the government’s broader goals to ensure that every citizen has access to quality healthcare, including mental health services,” he said.
The initiative, which is one of the events for celebrating the bank’s 27th anniversary is scheduled for Wednesday this week in Dar es Salaam.
Mr Kafu highlights that this year’s festival is not only about raising awareness of the importance of insurance in the society but also focuses on enhancing access to mental health services and improving the overall well-being of the nation.
Statistics from the Ministry of Health shows a staggering 82 per cent increase in mental health cases over the past decade.
Mental cases have risen from 386,358 in 2012 to 2,102,726 in 2021, making the need for mental health services more urgent than ever.
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Unfortunately, the country’s ability to address this growing challenge is hindered by a shortage of mental health professionals, infrastructure, medical equipment and essential medication.
For example, out of the 28 regions in the country, only five have facilities that provide adequate mental health services.
The most affected group is the youth aged 15 to 39, who represent the nation’s workforce, underscoring the need for intensified efforts to safeguard this generation for Tanzania’s future well-being and development.
Mr Kafu said by improving mental health services, Exim aims to contribute to the creation of a network of communities that can access care quickly and affordably.
Exim Insurance Department Manager Tike Mwakyoma said they are appreciating the support from partners in the insurance industry, who have stood by them since the last festival.
“Let’s continue this unity for the development of all Tanzanians and our nation as a whole,” the manager said.
Source: allafrica.com
