Several Tanzanian insurance companies recently established a consortium for insuring large and valuable projects in the country without having to rely on foreign insurance companies as used to be the case.
A total of 22 local insurance companies have joined hands to create a fund that will cover the risks of large projects, particularly for investment in the oil and gas sector, namely the Insurance Consortium for Oil and Gas.
The inauguration ceremony of the consortium took place in Dar es Salaam where the Deputy Minister of Finance and Planning Hon. Hamad Chande graced the event.
In his inaugural speech Hon. Chande said that in the past due to liquidity, capital, and insolvency, insurance companies could not cover the risk of large projects like oil and gas.
Hon. Chande took the opportunity to ask those participating in the consortium to ensure that they use the opportunities well for the development of the country.
On his part, the Commissioner of Insurance Dr. Baghayo Saqware reiterated that the move to have a special consortium for oil and gas is to join the forces of insurance companies so that they can protect against disasters together as the muscles of liquidity and capital become stronger.
Furthermore, Commissioner Saqware emphasized that the Tanzania Insurance Regulatory Authority (TIRA) will continue to monitor the performances of the insurance companies for the benefit of the citizens and investors in the country.