Tanzania’s insurance market grew by 19.11% last year, reaching a GPW of Sh1.47 trillion. This growth is fueled by the entry of new companies and a wider array of insurance products. Experts believe that further strategies, including regulatory support and market expansion, are necessary to sustain and enhance this growth trajectory.
Tanzania’s insurance market has witnessed a robust growth rate of 19.11% over the past year, driven by the influx of new companies and an expanded range of insurance products. An unaudited report from the Association of Tanzania Insurers (ATI) shows that the Gross Premium Written (GPW) rose to Sh1.47 trillion in 2024, up from Sh1.24 trillion in 2023. This growth is attributed to market expansion and a diverse suite of insurance solutions being offered.
Among the 30 non-life insurance companies in Tanzania, only three reported a decline in performance, while nearly all six life insurance firms experienced positive growth. CRDB Insurance, a new entrant, reported an exceptional increase in GPW from Sh1.8 billion to Sh26.8 billion in just two years. This surge highlights the upward trend in the insurance sector.
Jumanne Mbepo, an insurance specialist, noted that while the growth rate is encouraging, it falls short of the 22% target necessary for attaining a 5% insurance premium-to-GDP ratio by 2030. He emphasized the importance of expanded insurance products and market reach, as well as the remarkable performance of CRDB Insurance and Jubilee Life, which saw growth rates exceeding 50%.
The new interest in Islamic insurance products, particularly Takaful, illustrates an expanding but previously underdeveloped market segment. Life insurance demand has also grown approximately 7% in 2023, largely due to rising individual and group product uptake following the entry of new competitors.
Dr. Anselmi Anselmi, managing director of Acclavia Insurance Brokers & Risk Consultants, expressed optimism about the sector’s future, attributing this potential growth to economic stability and supportive regulations. He forecasts the insurance market could approach the Sh2 trillion milestone with the right interventions, advocating for inclusive insurance solutions and digital distribution improvements.
Dr. Anselmi cited the leadership of President Samia Suluhu Hassan as a critical factor in creating a favorable investment climate. He stated, “The President has opened up the country, attracting investors and driving economic projects that have directly benefitted the insurance industry.” Such ongoing projects are essential for sustained growth in the insurance sector.
Industry experts recommend numerous strategies to enhance insurance uptake, including fostering public-private partnerships (PPPs) and introducing tax incentives for life and health insurance premiums. Additionally, the removal of VAT on general insurance and the implementation of common mandatory insurance regulations are seen as beneficial moves for the sector.
In summary, Tanzania’s insurance market is on an upward growth trajectory, marked by a 19.11% increase in GPW. Key drivers include the entry of new companies, increased product diversity, and supportive regulatory measures. Experts believe that with targeted interventions, the market could reach significant milestones, contributing to overall economic development.
Original Source: www.thecitizen.co.tz
