CRDB Bank, Tanzania’s largest bank, has formally ventured into the insurance business with the launch of a new subsidiary, CRDB Insurance Company (CIC).
The announcement was made at an event where the new company received its operating license from the Tanzania Insurance Regulatory Authority (TIRA).
TIRA’s Director General, Dr Baghayo Saqware, handed over the license to CRDB’s Managing Director, Abdulmajid Nsekela, at a ceremony held in Arusha.
Dr Saqware highlighted that the establishment of CIC is not only a new entrant in the insurance industry but also a significant addition to the financial markets. He expressed confidence that the launch of the insurance firm would contribute to the country’s goal of increasing insurance coverage among Tanzanians to 50% by 2030, up from the current 18%.
Until now CRDB Bank has been involved in the insurance business acting as a bancassurance agent for other insurance companies.
However, the recent licensing allows it to operate a fully-fledged insurance subsidiary. Nsekela expressed that this development is a significant boost for the bank and the insurance business environment in the country.
The new subsidiary, CIC, will initially offer general insurance coverage but aims to be innovative in its service delivery.
Wilson Mnzava, the Managing Director of CIC, hinted that one of the areas of focus would be agriculture, with innovative measures being designed.
The total number of insurance companies registered as of May 2023 is 34, of which 31 are insurance companies and 3 are reinsurance companies. 31 bancassurance agents are licensed to operate in the insurance market.