This report is based on the 2019-2021 Insurance Market Performance Report published by the Tanzania Insurance Regulatory Authority (TIRA) in October 2022 and is enriched with information from other sources, comments, and quotes of CEOs and MDs of insurance companies in Tanzania, and other stakeholders.
This report was made possible with the support of TIRA, and the insurance and reinsurance companies who sponsored it, namely: First Assurance, Reliance, Sanlam, Strategis, Tan-Re, and Tanzindia.
Table of Contents
EXECUTIVE SUMMARY
Despite the impact of Covid-19, the Tanzanian economy expanded by 4.3% in 2021, compared to 2% at the peak of the pandemic, and 5.8% in 2019 prior to the start of the pandemic.
The Tanzanian insurance industry gross written premiums (GWP) amounted to TZS 911.5 billion for the year ended 31 December 2021, representing a nominal increase of 11% from TZS 824 billion written in 2020. The growth in GWP in 2020 was 1.2%.
General insurance business recorded a total GWP of TZS 746.4 billion which represents an increase of 8.4% compared to a gross premium written of TZS 688.6 billion during 2020.
Life assurance business volume has increased by 21.6% from TZS 135.7 billion in 2020 to TZS 165.0 billion in 2021
The insurance penetration (GWP / GDP) for the insurance business provided by insurance companies only for 2021 was 0.58% (GWP TZS 911.5 billion / GDP TZS 157,798.5 billion).
However overall insurance penetration which includes public and private insurance as a percentage of GDP was approximately 1.68% in 2021. The ratio slightly increased compared to a penetration ratio of 1.55% in 2020 and 1.58% in 2019.
In 2021, there were six million Tanzanians who used insurance services nationwide, out of a total population of about 60 million.
The total assets for the insurance industry increased by 8.4% from TZS 1,180 billion in 2020 to TZS 1,279 billion as of 31 December 2021. Total assets grew by 12.6% in 2020 compared to the value of total assets in 2019.
Investment assets increased by 7.8% from TZS 872 billion in 2020 to TZS 940 billion in 2021. During 2019 investments assets were TZS 751 billion, resulting in a growth of 16.1% in 2020.
The financial soundness of the industry was enhanced as a result of minimum capital improvement which increased by 4.3% from 2020 to 2021.
Tanzania Insurance Market Background And Regulation
In 1996, the Insurance Act liberalized the market paving the way for private new entrants to the market, until then a monopoly was held by the government’s National Insurance Corporation. These changes successfully attracted foreign and domestic investment to the Tanzanian insurance sector. Most companies are partnerships between foreign companies and local investors, combining external sector knowledge and financing with local market expertise.
The Tanzania Insurance Act No. 10 of 2009 established a general framework for companies operating in the insurance industry. The act was followed by the Micro Insurance Regulations of 2013, the Insurance Ombudsman Regulations of 2013, the Insurance Appeals Tribunal Regulations of 2013, and the Bancassurance Regulations of 2019.
The act and regulations are supplemented by circulars, guidelines, orders, and directives issued from time to time.
The act also created a regulatory and supervisory body, the Tanzania Insurance Regulatory Authority (TIRA). TIRA is mandated among other functions to: a) regulate and supervise the insurance sub-sector and registrants; b) advise the government on insurance and related matters; c) protect the interests of policyholders/consumers; and d) facilitate the development of a fair, safe and stable insurance industry.
The authority is also mandated to register various categories of registrants which include but are not limited to the following: sales force executives (SFEs), Takaful (Islamic insurance) operators, insurance agents, insurance assessors, insurance loss surveyors, insurance loss adjusters, insurance private investigators, insurance brokers, insurance companies, reinsurance companies, reinsurance brokers, bancassurance agents, actuarial firms, and insurance digital platforms.
TIRA also regularly carries out public awareness and education campaigns and consumer education seminars and workshops to increase awareness, particularly for life and general insurance.
Changes in the Regulation of the Tanzanian Insurance Market
In 2021 and 2022, significant changes in the insurance legal framework have been introduced with a view to increasing sector stability and consumer protection.
Worthy of notice are the amendment to the Non-Citizens (Employment Regulation) Act in 2021, and the amendment to the Insurance Act in 2022.
The amendment of the Non-Citizens (Employment Regulation) Act of 2015 in 2021 has relaxed the conditions of giving permits to foreign investors by increasing the number of such expatriates to work in the country from a maximum of five to eight years. On top of that, certain positions are guaranteed to be held by the owners of capital or people of high integrity of their choice as a strategy for protecting investors and their capital invested in the country. That has really created comfort to investors and more are attracted to invest in the country which will add to the stability of the insurance sub-sector and the financial sector in general.
The changes in the Insurance Act through the Finance Act, No. 5 of 2022 widen the scope of compulsory insurance classes to include marine vessels, public markets, commercial buildings, and imported goods (regardless of the means used in transporting such imports). Those were found to be vulnerable areas with losses occurring and affecting people and their properties. The amendments introduced Section 133A in the Insurance Act, No. 10 of 2009 which made insurance for the above-mentioned classes compulsory. The change is meant to increase insurance penetration and protection.
In addition, in 2022 TIRA issued guidelines in the areas of claims management, bancassurance, motor insurance, Takaful, insurance digital platforms, sales force executives, and reporting of insurance and reinsurance contracts (IFRS17).
Investment And Solvency Margin Management Guidelines 2022
The purpose is to enhance the protection of policyholders against the risk of non-compensation when an insurer suffers a substantial loss that cannot be met from its available resources, by ensuring the availability of resources.
Insurance Claims Management Guidelines 2022
The purpose is to avoid unnecessary delays in claims payments hence enhancing the public’s confidence in insurance services, by establishing an effective mechanism for turnaround time for processing and settlement of insurance claims in line with the industry’s best practices.
Bancassurance Conduct of Business Guidelines 2022
The purpose is to enhance the distribution, access, and availability of insurance products and services in the country, particularly to the unserved and underserved population, by ensuring that the insurance business is transacted in every branch of the bancassurance agents, and by introducing other guidelines on effective bancassurance business practices.
Minimum Benefit Structure For Motor Third Party Bodily Injury And Death Guidelines 2022
The purpose is to foster consistency and robustness in claims compensation, given the variances in the compensation rates for victims of third-party bodily injury, by establishing a mandatory minimum payable amount to the claimant.
Takaful Operational Guidelines 2022
The purpose is to increase penetration and contribution of the Islamic insurance subsector to the country’s GDP by ensuring Sharia-compliant consumers are accommodated into the insurance business.
Insurance Digital Platforms Guidelines 2022
The aim of the guidelines is to establish a mechanism for regulating and supervising activities of insurance digital platforms (IDPs), thus encouraging the evolvement of the insurance digital business model in the market to increase insurance uptake.
Sales Force Executives (SFE) Guidelines 2022
The objectives of the guidelines include establishing a mechanism of regulating and supervising activities of sales force executives (SFEs), by ensuring that they are registered by an insurance service provider licensed by TIRA, to increase insurance uptake, particularly in unserved or underserved areas.
International Financial Reporting Standard on Insurance Contracts (IFRS 17) Guidelines 2022
IFRS 17 is an International Financial Reporting Standard that was issued by the International Accounting Standards Board (IASB) in 2017 to replace IFRS 4 on accounting for insurance contracts and has an effective date of 1 January 2023. IFRS 17 requires insurers to restructure their financial reporting practices and financial statements. The guidelines were issued to set out a standardized process for the effective implementation of IFRS 17, and achieve consistency in the application of IFRS 17 across the industry.
In addition, the guidelines for compulsory insurance coverage for public amenities are expected to be ready in early 2023. The guidelines seek to compel the owners of public buildings or facilities to pay compensation to people who have been injured as a result of a disaster that may occur within those buildings.
The new guidelines are in accordance with the Financial Sector Development Master Plan (2020/21 – 2029/30) which guides the financial sector’s reform agenda and complements other efforts to advance private sector investments.
Important aspects of the Plan that will be implemented include:
(i) Broadening financial instruments to advance the availability of long-term capital;
(ii) Incentivizing banks and financial institutions to provide long-term credit to productive sectors;
(iii) Promoting cross-border capital flows to support the efficient allocation of capital to long-term investment;
(iv) Creating financial instruments for Tanzania diaspora to finance long-term projects;
(v) Enhancing the financial, technical, and managerial capacity of DFIs;
(vi) Strengthening affordable housing finance schemes; and
(vii) Promoting insurance companies and social security schemes to mobilize long-term savings.
The Plan also sets ambitious goals for the insurance sub-sector such as insurance coverage for 50% of the adult population and increasing the insurance penetration rate to 5%.
Tanzania Insurance Market Players
Under the Insurance Act of 2009, Tanzania’s insurance business is divided into two main classes: general insurance business, and life assurance business.
General insurance business comprises motor, fire, engineering, accident, marine, aviation, health, oil & gas, liability, agriculture, bond, theft and miscellaneous.
Life assurance business includes individual life, group life, and other life. These are further categorized into term assurance, whole life assurance, endowment, group term, group credit, and group funeral.
The act also classifies insurance intermediaries into different categories, including:
- Insurance brokers, who act as agents for policyholders in arranging insurance coverage.
- Insurance agents, who represent insurance companies in selling insurance policies.
- Loss adjusters, who investigate and assess claims on behalf of insurance companies.
- Insurance surveyors, who inspect and report on properties and other assets to be insured.
To these, the Bancassurance Regulations of 2019 provide for a regulatory framework and legal guidance for this new distribution channel via banks to increase insurance uptake and penetration.
Tanzania Insurance Companies
The total number of insurance companies registered as of May 2023 is 34, of which 31 are insurance companies and 3 are reinsurance companies.
The last entrant is CIC Insurance, the subsidiary of CRDB Bank, the largest in the country, which got licensed by TIRA in May 2023.
1 | Alliance Insurance | |
2 | Alliance Life | |
3 | Assemble Insurance | |
4 | Britam Insurance | |
5 | Bumaco Insurance | |
6 | Bumaco Life | |
7 | CRDB Insurance Company (CIC) | |
8 | First Assurance | ![]() |
9 | GA Insurance | |
10 | Heritage Insurance | |
11 | Icea Lion Insurance | |
12 | Insurance Group Of Tanzania | |
13 | Jubilee Alliance Insurance | |
14 | Jubilee Life | |
15 | Maxinsure | |
16 | Mayfair Insurance | |
17 | Meticulous General | |
18 | Metro Life | |
19 | Mgen Insurance | |
20 | Milembe Insurance | |
21 | Mo Assurance | |
22 | National Insurance Corporation | |
23 | Phoenix Of Tanzania | |
24 | Reliance Insurance | ![]() |
25 | Resolution | |
26 | Sanlam General | ![]() |
27 | Sanlam Life | ![]() |
28 | Strategis Insurance | ![]() |
29 | Tanzindia Assurance | ![]() |
30 | Uap Insurance | |
31 | Zanzibar Insurance Corporation |
Tanzania Reinsurance Companies
Three reinsurance companies are licensed in Tanzania: Tan-Re, and more recently Grand Re and PanAfrique Re which were licensed in 2022. In 2021, Tan-Re contributed to about 99.7% of the local reinsurance market and ranked as the 15th largest reinsurance company in Africa.
1 | Tan-Re | ![]() |
2 | Grand Re | |
3 | PanAfrique Re |
In addition, 22 foreign reinsurance companies are accredited to transact reinsurance business in Tanzania.
Reinsurance Companies Accredited in Tanzania
1 | Allianz Global Corporate & Specialty SE |
2 | Cica-Re |
3 | Constantia Insurance Company Limited |
4 | Continental Reinsurance Limited |
5 | East Africa Reinsurance Company |
6 | Factory Mutual Insurance Company |
7 | Ghana Reinsurance Company(Kenya) Limited |
8 | Grand Reinsurance Company Private Limited |
9 | Guardrisk Insurance Compoany Limited |
10 | Guardrisk International Limited Pcc |
11 | International General Insurance Co. Ltd |
12 | Mapfre Asistencia, Campania De Seguros Y Reaseguris, S.A |
13 | Munich Reinsurance Company of Africa Ltd |
14 | New Reinsurance Company Limited |
15 | Ocean International Reinsurance Company Limited |
16 | Optimum Global Insurance Company Limited |
17 | Rochester Reinsurance PLC |
18 | Santam Limited |
19 | Score Se |
20 | Swan Reinsurance PCC |
21 | The Hollard Insurance Company |
22 | Waica Reinsurance (Kenya) Limited |
Tanzania Insurance Intermediaries and Other Service Providers
Insurance Brokers
The total number of registered brokers in 2021 was 81 compared to 76 and 100 in 2020 and 2019 respectively. The trend of brokers’ registration increased by approximately 6.6% from 2020. As of 31st December 2022, the number has increased to 113.
Reinsurance Brokers
In 2022, six reinsurance brokers were licensed in Tanzania as opposed to four in 2021.
In addition, 36 foreign reinsurance brokers are accredited to transact reinsurance business in Tanzania.
Insurance Agents
The total number of registered insurance agents as of 31st December 2022 was 1,294, compared to 789 in 2021, 745 in 2020, and 605 in 2019.
Bancassurance Agents
31 bancassurance agents were licensed to operate in the insurance market as of 31st December 2022 compared to 23 in 2021 and 14 in 2020.
Insurance Digital Platforms
As of December 2022, 4 out of the 5 mobile operators active in Tanzania sell insurance products namely Vodacom, Tigo, Airtel, and TTCL. Other licensed Digital Platforms include Axieva Africa Lab, and Imatic Technologies.
Actuarial Firms
The total number of licensed actuarial firms is four in 2021 compared to three and two in 2020 and 2019 respectively.
Insurance Private Investigators
Three Insurance Private investigators are licensed in 2022, as in 2020 and 2019.
Global Insurance Market Performances
In 2021 the global insurance market bounced back from the slump in 2020 following the impact of the COVID-19 pandemic. The global insurance business grew by 9% to reach USD 6,8 trillion in GWP versus 0% growth in 2020 with USD 6.2 trillion. Notable high recovery rates were seen in the Middle East and Africa region (EMEA) which accounted for 29% of the global insurance business and where the growth rate was 14% in 2021 versus a contraction of -3.2% in 2020 and -1.1 in 2019. The America region, which constituted 44% of the world’s insurance portfolio, recovered at a growth rate of 8.6% in 2021 versus a growth rate of 1.4% in 2020 and 3.7% in 2019. The Asia-Pacific region which accounted for the rest of the global insurance market grew by 4.1% in 2021 versus 1% in 2020 and 3.9% in 2019. China, which had adopted extended lockdown measures, still grew at 6.1% in 2021 compared to 6.2% and 7.4% in 2020, and 2019 prior to the impact of COVID-19.
In 2021 there was a paradigm shift towards life insurance which attained a higher growth rate of 9.9% compared to non-life insurance rate of 8.4%. The latter had in the previous two years taken the lead in growth rates over life assurance with a growth of 5.6% against a decline of 6.5% in 2020, and a growth of 3.4% against 1.2% in 2019 respectively.
Global non-life insurance grew by 8.4% in 2021 to reach USD 3.8 trillion compared to 5.6% in 2020 and 3.4% in 2019. America region maintained its lead position in market share, with 59.3% in 2021 (59.1% in both 2020 and 2019), and grew at 8.8% in 2021 (2020: 5.6% and 2019: 3.9%). EMEA, with a market share of 22.4% and a growth rate of 9.7% doubled its growth rate compared to 4.9% in 2020. (2019: a decline of -0.3%). The Asia-Pacific, which accounted for the rest of the non-life market, grew by 5.6% in 2021, versus 6.1% and 6.2% in 2020 and 2019.
Global life assurance grew by 9.9% in 2021 to reach USD 3 trillion from a decline of -6.5% in 2020 and a slight growth of 1.2% in 2019. The highest growth was noted in Africa with a growth of 22.7%, while in 2020 it saw a decline of -9.5%, and -2% in 2019. The major contributors to the global life insurance were Asia-Pacific which contributed 37.7% and grew by 3.2% (a decline of -1.8% in 2020 and a growth of 2.6% in 2019), followed by EMEA which had a contribution of 37.6% and a growth of 18.8% (a decline of -9.3% in 2020, and 2019 a decline of -1.6%). The America region contributed 24.7% to the global life assurance business and grew by 8.2% compared to the previous year’s decline of -9.5%, and a growth of 3.1% in 2019.
Africa Insurance Market Performances
The insurance industry in Africa for the last three years to 2021 maintained a position of 1.1% of the global insurance business. Africa also bears about 3% of the global GDP and about 17% of the global population. The average insurance penetration in Africa is estimated to be 2% (the world average is 7.4%) but the figures vary significantly from country to country.
Africa’s low penetration rate remains very uneven throughout the continent, with two third concentrated in South Africa, followed by Morocco at 6.8%, Kenya at 3.3%, Nigeria at 2.4%, and Namibia at 1.9%.
Africa’s insurance industry grew by 19.9% to attain USD 74,190 million in 2021, standing as one of the high-growth regions, after it suffered a decline of -9.2% in 2020, and -1.8% in 2019.
Africa’s non-life insurance amounted to 30.8% of the Africa portfolio and in 2021 it grew by 14.1% to attain USD 22,875 million. In 2020 it saw a decline of -8.7% and in 2019 of -1.3%.
Arica’s life assurance accounted for 69.2% of its business in 2021.
East Africa Insurance Market Performances
Despite the impact of COVID-19, the countries in the region still managed to appreciate the positive performance in most of the parameters of the insurance business while some decline appeared in a few parameters of the insurance undertaking.
Each East African country adopted measures peculiar to its own circumstances including lockdown of activities, curfew, wearing of masks, sanitization of hands, testing against the virus and contact tracing. Such measures impacted economic activities within the region including the insurance business.
Kenya
Kenya’s insurance GWP grew by 16.9% to KES 275.0 billion in 2021 from KES 235.3 billion in 2020. This represented a penetration rate of 2.9%; a slight increase from a rate of 2.3% in 2020.
Non-life insurance grew by 13.3% to KES 150.3 billion in 2021 from KES 132.7 billion in 2020, while life Insurance grew by 21.5% to KES 124.7 billion in 2021 from KES 102.6 billion in 2020.
Uganda
Uganda’s insurance GWP grew by 11.1% from UGX 1,065 billion in 2020 to UGX 1,184 billion in 2021. Insurance penetration increased to 0.8% in 2021 from 0.7% in 2020.
The non-life business generated UGX 705 billion in GWP up from UGX 664.975 billion in 2020, representing a 6.1% growth in premiums. Life insurance generated UGX 397.12 billion in GWP in 2021 up from UGX 324.35 billion in 2020, representing a 22.44% growth in premiums.
Tanzania Insurance Market Performances
While most of the East African countries adopted measures like economy lockdowns and curfews, Tanzania adopted a more relaxed approach whereas economic activities were allowed to proceed with no lockdowns, while preventive measures including observing social distancing, hand sanitization, masks wearing, and reduced non-essential movements and social gatherings were strictly observed.
As a result of such an approach, the country experienced economic growth, though at a lesser rate of 4.9% in 2021 compared to an average growth rate of 6.7% attained in the previous five years.
Within this economic framework, the Tanzanian insurance industry GWP amounted to TZS 911.5 billion for the year ended 31 December 2021, representing a nominal increase of 11% from TZS 824 billion written in 2020. The growth in GWP in 2020 was 1.2%. The overall insurance penetration was 1.68% in 2021, 1.55% in 2020, and 1.58% in 2019.
The Eastern zone of Tanzania recorded 84.0% of the total premium written in 2021, followed by the Northern zone (5.6%), the Lake zone (4.4%), the Zanzibar archipelago (2.3%), the Central Zone (1.8%), and Southern Highlands zone (1.7%). The concentration of business in the Eastern zone is largely associated with the enormous volume of business conducted in the commercial city of Dar Es Salaam and the significant presence of insurance business undertakings.
Out of the total GWP of 2021, 40% was transacted directly by insurance companies, while 36.3% was transacted through brokers, 19.7% was transacted through bancassurance agents, and 4% was transacted through insurance agents located throughout the country. The trend of brokers’ share in the market has been decreasing over the past five years due to competition within the market, notably of bancassurance agents which are gaining market share since their introduction in 2019 and held 20% of the market in 2021.
The impact of COVID-19 on the insurance sector has also been counteracted by the execution of the country’s strategic development projects that have continued to see a good contribution to economic funding and thus the insurance sector as well.
The overall Insurance penetration ratio which includes public and private insurance as a percentage of Gross Domestic Product was approximately 1.68% in 2021. The ratio slightly increased compared to a penetration ratio of 1.55% for 2020. In 2019 the overall insurance penetration ratio was 1.58%.
The Tanzania insurance premium per capita for 2021 was TZS 15,334.1 compared to TZS 14,746.8
The insurers’ net worth increased by 4.3% to TZS 416.0 billion at the end of 2021 compared to TZS 399.0 billion at end of 2020. The insurers’ net worth in 2019 was TZS 327.2 billion.
Total assets increased by 8.4% to TZS 1,278.6 billion from TZS 1,179.5 billion in 2020 while liabilities increased by 10.5% to TZS 862.5 billion in 2021 from TZS 780.6 billion at end of 2020. As at end of 2019 total assets stood at TZS 1,047.0 billion while liabilities were TZS 719.6 billion.
Insurers’ total investments increased by 7.8% from TZS 872 billion in 2020 to TZS 940 billion in 2021. billion in 2021. During 2019 investments assets were TZS 751 billion, resulting in a growth of 16.1% in 2020.
In 2021, the largest share of insurers’ investment assets comprised of bank deposits including term deposits and cash and bank balances (42.5%), followed by government securities (34%), real estate investments (10.7 %), shares (9.9 %), investments in related parties (1.7 %), and other financial investments (1.3 %).
Investments in government securities increased significantly by 16.9% from TZS 273 billion in 2020 to TZS 319 billion in 2021 due to the high yield of these securities.
Contribution of Commercial Insurance
The total GWP of commercial insurance companies grew by 10.6% to TZS 911.5 billion in 2021 from TZS 824.3 billion in 2020. The growth was 1.2% in 2020 from TZS 814.5 billion in 2019. An increase was on account of an increase in the volume of economic activities which resulted in purchasing of insurance for protection, an increase in compliance by the public, and aggressive marketing and continued public awareness programs.
The insurance penetration for the insurance business provided by insurance companies only (premiums as a percentage of GDP) for 2021 was 0.58% (GDP: TZS 157,798.5 billion; GPW: TZS 911.5 billion), representing an improvement from the position in 2020 which was 0.56% (GDP: TZS 148,522.1 billion; GPW: TZS 824.3 billion). The penetration stood at 0.58% during 2019 (GDP: TZS 139,641.9 billion; GPW; TZS 814.5 billion).
Contribution of Public Insurance
The National Health Insurance Fund (NHIF), the Workers Compensation Fund (WCF), and the National Social Security Fund (NSSF) altogether accounted for an insurance penetration in Tanzania of 1.1%.
NHIF’s penetration was 0.23% in 2021 with TZS 356.75 billion, 0.22% in 2020 with TZS 323.37 billion, and 0.22% in 2019 with TZS 309.23 billion.
WCF’ penetration was 0.07% in 2021 and 2020 with TZS 106.4 billion and TZS 108.9 billion, and was 0.08% in 2019 with 116.8 billion.
The Social Health Insurance Benefit’s (SHIB) penetration was 0.8% in 2021 with TZS 1,213.1 billion, and 0.7% in 2020 and 2019 with TZS 1,086.3 billion and TZS 926.0 billion.
Contribution of Insurance to the Tanzanian Financial and Insurance Sector Gross Domestic Product
During 2021, the financial services activities including insurance contributed TZS 5,720.8 billion to the GDP representing 3.6% of the total GDP; whereas, in 2020, the said sector contributed TZS 5,259.8 billion to the GDP which comprised 3.5% of the total GDP during the same period. In 2019, insurance and financial services accounted for TZS 4,927.6 billion representing 3.5% of the total GDP for the same period. As one of the financial sub-sectors, insurance, in terms of gross premium underwritten for 2019, 2020 and 2021 contributed 16.5%, 15.7%, and 15.9% in financial and insurance activities, respectively. The increased cooperation between the insurance sector and financial sector including bancassurance is expected to impact the contribution of the insurance sub-sector as well as the financial sector to the GDP.
Contribution of Insurance to the Agricultural Sector
In 2021, the agriculture sector accounted for 27% of the country’s GDP and employed about 62% of the population. Considering the role of agriculture in the national economy, TIRA, in collaboration with other stakeholders, is increasing the farmers’ awareness of the use of agricultural insurance as a means of protection against various risks
As a result, a total of TZS 1,323.7 million was underwritten as GWP in 2021, versus TZS 159 million in 2020 and TZS 330.0 million in 2019. This constitutes 0.2% of the total general business underwritten during the same year. The largest part of the premium was from the crop insurance class of business (90.8%). Other classes included livestock and fisheries.
Contribution of Insurance to Government Revenue
Insurance companies contributed to Government revenue through payment of corporate tax amounting to TZS 15.3 billion during 2021 representing an increase of 4.8% from TZS 14.6 billion paid during 2020. The increase in corporate taxes is attributed to an increase in investment income.
Insurance companies also contribute to government revenue in terms of payment of Value Added Taxes, Withholding Taxes and different levies imposed by the Government.
Tanzania General Insurance Market Performances
General Insurance – Underwriting Results
The general insurance business recorded a total GWP of TZS 746.4 billion in 2021, representing an increase of 8.4% compared to a gross premium written of TZS 688.6 billion in 2020. In 2019 gross premium written was TZS 694.9 billion.

General insurance companies recorded an underwriting loss amounting to TZS 2.2 billion in 2021, marking a significant decrease in general insurance business’s underwriting profit as compared to 2020 where there was an underwriting income of TZS 11.7 billion, and 2019 with an underwriting profit of TZS 23.0 billion. The decrease in underwriting profit was a result of a huge decrease in the movement of unearned premiums by 526.7% between 2020 and 2021.
The change in the movement of unearned premiums has resulted from changes in reporting requirements where some companies have revalued their insurance contracts to reflect the actual values of insurance liabilities.
General Insurance – Class-by-Class Analysis
The insurance product mix in 2021 shows an increase in the share of the motor insurance business at 35.5% (2020: 33.0%, 2019:32.0%). This was followed by fire, 21.5% (2020: 21.4%, 2019: 20%); health, 18.4% (2021: 19.8%, 2019: 19.0%); accident, 7.0% (2020: 7.4%, 2019: 1.8%); aviation, 4.7% (2020: 3.8%, 2019: 4.3%); marine, 4.3% (2019: 4.5%, 2019: 4.2%); engineering, 3.7% (2020: 4.6%, 2019: 8.6%), and oil and gas, 0.1% (2020: 0.4%, 2019: 0.7%).
During 2021, the “other general class” of insurance business accounted for 4.9%, and was made of miscellaneous, 1.4% (2020; 1.9%, 2019: 1.5%), theft, 1.2% (2020: 1.1%, 2019: 3.6%), bond, 1.2% (2020: 0.9%, 2019: 1.7%), liability, 0.9% (2020: 1.1%, 2019: 2.6%) and agriculture, 0.2% (2020:0.02%, 2019: 0.1%).
Tanzania General Insurance Product Portfolio Mix 2021
During 2021, on a class-by-class basis, motor, marine, aviation and accident classes of business realized underwriting profits of TZS 14. 4 billion, TZS 1.9 billion, TZS 1.1 billion and TZS 0.9 billion.
However, engineering, fire, health, other general, and oil & gas classes of business recorded underwriting losses of TZS 6.3 billion, TZS 6.1 billion, TZS 5.7 billion, TZS 2.4 billion, and TZS 0.04 billion respectively.
General Insurance – Business Profit
The investment income earned by general insurance companies for 2021 amounted to TZS 54.3 billion, representing a 3.3% increase compared to TZS 52.6 billion earned in 2020. In 2019 investment income amounted to TZS 32.1 billion.
General insurers’ net income after tax amounted to TZS 39.3 billion in 2021, having decreased by 24.1% compared to TZS 51.9 billion recorded in 2020. A decrease in net income after tax was on account of the decrease in net operating income. Net income after tax amounted to TZS 45.8 billion in 2019.
General Insurance – Key Performance Indicators
General Insurance – Retention Ratio
During 2021 the industry retention ratio stood at 52.8%, a slight increase from 52.2% observed in 2020. In 2019 the retention level was 53.5%. The average retention ratio for the past ten years stood at 53.7%.
General Insurance – Loss Ratio
The general insurance net loss ratio increased to 49.7% in 2021 compared to a ratio of 43.5% in 2020. In 2019, the net loss ratio was 44.0%. Gross claims paid increased by 12.8% to TZS 301.9 billion during 2021, compared to claims of TZS 267.5 billion paid in 2020. Gross claims paid in 2019 amounted to TZS 268.4 billion. Taking into account the reinsurance claims recoveries, net claims paid by local insurers amounted to TZS 184.8 billion in 2021, being 10.3% higher compared to net claims of TZS 153.6 billion paid in 2020. Net claims paid in 2019 amounted to TZS 162.5 billion.
General Insurance – Expenses Ratio
The ratio of net expenses to net earned premiums increased to 45.2% in 2021 compared to 44.9% in 2020, and remained higher than the recommended 30.0%. In 2019, the ratio was 42.5%.
General Insurance – Combined Ratio
The industry combined ratio deteriorated to 100.7 % in 2021 compared to 96.8% in 2020. The ratio was above the international recommendable ratio of 100% is an indication of loss.
The deterioration is also shown by the performance of the industry in terms of profits in the general insurance business where during 2021 the industry had an underwriting loss amounting to TZS 2.2 billion which corresponds to a decrease of 119.1% compared to an underwriting profit of TZS 11.7 billion in 2020. In 202 and 2019, the insurance industry combined ratio was 96.8% and 93.7%.
It should be noted that the combined ratio does not take into account the investment income earned by general insurance companies which amounted to TZS 54.3 billion in 2021.
Tanzania Life Assurance Market Performances
Life Assurance GWP 2017-2021 (TZS Million)
As of 2022, six insurance companies transacted life assurance business in Tanzania. In 2021, life assurance companies had underwritten 531,768 policies with more than 4,704,270 lives insured (of a population of 61.7 million in 2022).

Life Assurance Products in Tanzania Market
Life assurance portfolio comprises different products namely term assurance, endowment assurance, funeral insurance, and group credit insurance which constitute the largest share in the market.
Life insurance companies also exercise the important role of managing superannuation funds. Therefore, business is categorized into the following three groups: i. Individual life assurance, ii. Group life assurance iii. Superannuation or pension is also known as other life assurance.
The evolvement of individual life products with saving elements and educational guarantees to beneficiaries has impacted the response of many individuals to purchase insurance for savings and protection of the assured in event of the death of the policyholder.
Life Assurance – Underwriting Results
Life assurance business volume has increased by 21.6% from TZS 135.7 billion during 2020 to TZS 165.0 billion in 2021. In 2019, GWP for the life assurance business was TZS 119.6 billion.
The growth of the life assurance business was mainly attributed to the increase in awareness following different awareness creation campaigns and sensitization programs. Further growth is anticipated as a result of the introduction of bancassurance agents which is among the sales channels distributing life assurance products.
Life Assurance – Class-by-Class Analysis
Group life assurance experienced a growth of 15.5% from TZS 113.8 billion of premiums recorded in 2020 to TZS 131.4 billion in 2021. The individual life assurance had a growth of 53.6% from TZS 21.9 billion to TZS 33.7 billion from 2020 to 2021 respectively. However, there was a decline of 55.4% in the volume of business for other life classes of business from TZS 57.0 million in 2020 to 25.4 million in 2021.
Tanzania Life assurance Distribution of Gross Written Premiums in 2021 (%)
Life Insurance – Business Profit
Life assurance companies earned an investment income of TZS 17.2 billion in 2021, being 1.8% lower compared to an investment income of TZS 17.5 billion recorded in 2020. Investment income recorded in 2019 was TZS 10.0 billion.
Total income (including net premium written, investment income, and other income) recorded by life assurance companies amounted to TZS 160.6 billion in 2021, which is 17.7% higher than TZS 136.4 billion in 2020. In 2019 total income was TZS 114.2 billion.
The total policyholders’ benefits amounted to TZS 95.7 billion in 2021, which is 39.5% higher than TZS 68.6 billion paid in 2020. Policyholder benefits paid in 2019 amounted to TZS 50.6 billion.
Life insurers’ net income after deducting policyholders’ benefits and operational expenses stood at negative TZS 5.5 billion in 2021, representing a significant decrease of 180.6% compared to income of TZS 6.8 billion recorded in 2020.
Life Assurance – Key Performance Indicators
Life Assurance – Retention Ratio
The industry retention for life assurance business in the year 2021 ratio stood at 85.7% which marked a slight increase from 85.0% observed in 2020. The incremental trend of retention ratio in life business is a reflection of ongoing initiatives on localization of life assurance business undertaken in collaboration with the Association of Tanzania Insurers.
Life Assurance – Claim Ratio
Claims paid by the life assurance business increased by 39.5% from TZS 68.6 billion in 2020 to TZS 95.7 billion in 2021. The significant increase in claims/benefits was an account of the increase in death claims during COVID – 19 pandemic. In 2019 policyholder benefits amounted to TZS 50.6 billion.
Life Assurance – Management Expenses Ratio
Management expenses as the percentage of the GWP improved by 1.0% on account of growth in gross premium written from 16.8% in 2020 to 15.8% in 2021. The management expenses ratio was 21.0% in 2019.
Tanzania Insurance & Assurance Intermediaries Performances
Brokers Participation in Insurance Underwriting
Out of the total GWP of 2021 in respect of both life assurance and general insurance businesses (TZS 911.5 billion), 36.3% (TZS 339.6 billion) was transacted through brokers (2020: 46.8%, 2019: 43.4%). The trend of brokers’ share in the market has been decreasing over the past five years due to competition within the market, notably of bancassurance agents which are quickly gaining market shares.
General Insurance Business by Brokers
During 2021, a total of TZS 285.1 billion in general insurance premiums (38% of all general insurance premiums of TZS 746.4 billion) were transacted through brokers, having a decrease of 10.4% compared to TZS 318.2 billion transacted in 2020. Business transacted through brokers in 2019 was TZS 313.0 billion.
On a class-by-class basis, the level of involvement of brokers in underwriting general insurance business differs from one class to another. The highest brokers’ involvement was observed in micro-insurance whereby 100% of the entire premium volume from this class was transacted through brokers. This was followed by other general classes of business with (88.1%), fire (49.2%), engineering (47.2%), marine (46.2%), accident (31.0%), motor (30.9%), aviation (27.9 %) and health (27.8%).
Tanzanian Brokers Contribution in Each Class of General Insurance
Life Assurance Business by Brokers
At the end of 2021, 16 brokers transacted life assurance business (24 in 2020). The total premiums transacted by brokers in respect of a life assurance business amounted to TZS 54.5 billion (33% of all life insurance premiums of 165.0 billion) having decreased by 27.4% from TZS 75.1 billion transacted in 2020. In 2019 life assurance business transacted through brokers amounted to TZS 60.5 billion.
On a class-by-class basis, the highest brokers’ involvement in transacting life assurance products was observed in group life business whereby 41.4% of the entire premium volume of the class, was transacted through brokers (2020: 67.4%). This was followed by other life 10.6% (2020: 12.5%) and individual life 0.2% (2020: 0.3%).
Tanzanian Brokers Contribution in Each Class of Life Assurance

Agents Participation in Insurance Underwriting
Out of the total insurance premiums underwritten during 2021 in respect of both life assurance and general insurance businesses (TZS 911.5 billion), 14.0% (TZS 127.4 billion) was transacted through insurance agents located throughout the country.
General Insurance Business by Agents
During 2021, a total of TZS 109.4 billion of general insurance premiums was transacted through agents (14.6% of all general insurance premiums of TZS 746.4 billion). The position deteriorated compared to TZS 115.3 billion in 2020. Business transacted through agents in 2019 amounted to TZS 105.9 billion.
The level of involvement of agents in the underwriting of general insurance differed from one class to another. The highest insurance agent involvement in 2021 was observed in motor insurance whereby 60.2% of the entire premium volume collected by agents was from that class of business. The contribution increased compared to 54.1% in 2020. This was followed by health with 13.3% (2020:36.4%), fire with 10.0% (2020:3.5%), engineering with 4.5% (2020:1.2%), bond with 2.9% (2020:0.6%); miscellaneous with 2.9% (2020:0.6%); marine with 2.5% (2020:1.8%), liability with 1.1% (2020:0.5%), accident with 1.0% (2020:0.5%), and remaining classes namely aviation, oil and gas, theft and agriculture with less than 1.0%.
Life Assurance Business by Agents
As at end of 2021, the total premium collected by insurance agents in respect of the life assurance business amounted to TZS 18.0 billion (10% of all life insurance premiums of 165.0 billion). It increased by 95.7% compared to TZS 9.2 billion collected during 2020. During 2019 business transacted through agents amounted to TZS 15.7 billion.
On a class-by-class basis, the highest insurance agent’s involvement in transacting life assurance products in 2021 was observed in group life whereby 99.6% of the entire premium volume transacted by insurance agents was from this class of business. This was followed by individual life (0.4%). In 2020, 71.6% of the entire premium volume collected by insurance agents was from group life, followed by Individual life (28.4%).
Bancassurance Agents Participation in Insurance Underwriting
Out of the total insurance premium written during 2021 (TZS 911.5 billion), TZS 179.1 billion representing 19.7% was transacted through bancassurance agents. In 2020 business transacted through bancassurance agents amounted to TZS 92.5 billion representing 11.2% of the total insurance premiums written.
General Insurance Business By Bancassurance Agents
During 2021, bancassurance agents contributed TZS 90.1 billion in the general insurance business representing 12.1% of the total general insurance premium. In 2020 the amount was TZS 25.5 billion representing 3.7% of the total general insurance business.
On a class-by-class basis, the level of involvement of bancassurance agents in the underwriting of general insurance in 2021 differed from one class to another. The highest bancassurance agents’ involvement was observed in motor insurance with 51.0% of the entire premium volume collected by bancassurance agents. That was followed by fire (14.7%), other general (16.1%), health (11.2%), accident (3%), and remaining classes (less than 3.0%). In 2020 motor insurance accounted for 44.0% followed by miscellaneous at 28%, fire at 13%, health at 7.9%, and the remaining classes below 3.0%.
Life Assurance Business by Bancassurance Agents
Total premium transacted by bancassurance agents in respect of life assurance business in 2021 amounted to TZS 89.0 billion, representing 53.9% of the total life assurance premium. In 2020 the amount was TZS 72.9 billion representing 53.7% of the total life assurance business.
On a class-by-class basis, the highest bancassurance agents’ involvement in transacting life assurance products is observed in group life business whereby 90.9% of the entire premium volume was transacted by bancassurance agents. This was followed by individual life contributing 9.1%. In 2020 the largest portion was in group life with 94.9% followed by individual life with 5.1%.
Tanzania Reinsurance Market Performances
Reinsurance has been a critical area of focus for TIRA due to its contribution to capacitating the industry in both the life and non-life insurance business. The market has a number of various reinsurance counterparties ranging from reinsurance brokers, local insurers, locally accredited reinsurance brokers, and reinsurers advisors.
With its Circular 55/2017, TIRA identifies quality reinsurance players (brokers and reinsurers) and ensures adequate retention for local underwriters while providing guidance on how reinsurance arrangements are to be done.
A number of achievements have been observed in reinsurance since the inception of Circular 55, including:
i. Introduction of Reinsurance Portal which is an online platform that assists local facultative arrangements and regulatory approval processes.
ii. Enhancement of life assurance reassurance treaty programs which resulted in an increase in retention levels for life;
iii. Enhancement of reinsurance functions within insurance companies;
iv. Improvement of general reinsurance treaty arrangements;
v. Increase in the number of reinsurance counterparties
As a result, the number of reinsurance companies licensed in Tanzania has increased from only one, Tan-Re, to three with Grand Re and PanAfrique Re which were licensed in 2021 and 2022. In addition, 22 foreign reinsurance companies are accredited to transact reinsurance business in Tanzania.
Moreover, clause 29 of the circular requires life assurance businesses to be locally placed by 2023.
Retention Level for General Insurance business
During 2021 the industry retention ratio stood at 52.8%, a slight increase from 52.2% observed in 2020. In 2019 the retention level was 53.5%. The average retention ratio for the past ten years stood at 53.7%.
Retention Level for Life Assurance Business
The industry retention for life assurance business in 2021 ratio stood at 85.7% which marked a slight increase from 85.0% observed in 2020. The incremental trend of retention ratio in life business is a reflection of ongoing initiatives on localization of life assurance business undertaken in collaboration with the Association of Tanzania Insurers.
Reinsurance – Retention Ratio
In the year 2021, reinsurers recorded a retention ratio of 43.5%. The ratio was lower than the retention ratio of 49.7% recorded in 2020 and significantly lower than the ratio of 63.3% recorded in 2019.
Reinsurance – Underwriting Results
The reinsurance companies reported GWP amounting to TZS 166.0 billion in 2021 representing an increase of 18% from 140.6 billion reported in 2020. In 2019 gross premium written was TZS 141.4 billion. During 2021, Tan-Re contributed to about 99.7% of the GWP in the market.
Tanzanian Resinsurance Companies GWP and Total Assets 2017-2021 (TZS Million)
The reinsurance companies recorded an underwriting profit of TZS 8.4 billion in 2021 which represented a slight increase in underwriting results compared to TZS 8.2 billion in 2020. The increase was a result of an increase in premium earned vis-a-vis a stable position in operating expenses during the period under review.
Investment income increased by 22.3% to TZS 4 billion in 2021 compared to 3.3 in 2020. In 2029 it reached TZS 1.9 billion.
In 2021, the pre-tax profit reported by reinsurance companies was TZS 12.7 billion compared to a pre-tax profit of TZS 11.6 billion in 2020, and TZS 8.8 billion in 2019.
Reinsurance – Class by Class Analysis
During 2021, the largest share of total GWP reported by reinsurance companies was fire with 24.6% (2020:32.8% 2019: 27.5%), followed by accident with 19.0% (2020:22.0%; 2019:17%), aviation with 17.7% (2020:7.9%; 2019: 8.3%), motor 15.2% (2020:16.0%;2019: 16.5%), health 11.8% (2020:11.0%;2019:22.4%), marine with 5.3% (2020:4.7%; 2019:4.2%), engineering with 3.3% (2020:5.5%; 2019: 4.1%), oil & gas with 2.3%, and other general with 2.6%.
Reinsurance – Loss Ratio
The net loss ratio of reinsurance companies increased to 52.9% during 2021 compared to 49.5% in 2020. In 2019 the reinsurance companies recorded a net loss ratio of 58.8%.
Reinsurance – Management Expense
During 2021 management expenses to GWP by reinsurance companies decreased to 16.1% compared to 18.7% in 2020, being below the recommendable ratio of 20.0%. During 2019, the ratio was 20.4%. On the other hand, management expenses to net premiums written decreased to 35.9% in 2021 from 38.5% in 2020 being above the recommended ratio of 30%. In 2019 the management expense ratio was 33.2%.
Reinsurance – Combined Ratio
The combined ratio for reinsurance companies in 2021 was 88.8% which represents a slight increase compared to a ratio of 88.0% recorded in 2020. In 2019 the combined ratio was 92.0%.
Reinsurance Brokers
During 2021, four reinsurance brokers carried out reinsurance broking business: Afro Asian Reinsurance Brokers, MIC Reinsurance Brokers, TAPEX Reinsurance Brokers, and Willmars Reinsurance Brokers. The number has increased to six with Aris London Reinsurance Brokers, and Minerva Reinsurance Brokers.
As of 31st December 2021, local reinsurance brokers recorded total assets amounting to TZS 2.1 billion which represents an increase of 91% from TZS 1.1 billion recorded as of 31st December 2020. The increase was mainly caused by the increase in cash and bank deposit that amounted to a total of TZS 1.09 billion in 2021 compared to 2020 where cash and bank deposit were TZS 0.24 billion.
Total liabilities comprised TZS 3.72 billion in 2021 (2020: TZS 2.53 billion). The increase in total liabilities of 47% was mainly caused by the component of loans from related parties and trade and other payables.
Capital and reserves declared by the reinsurance brokers amounted to negative TZS -1.60 billion as of 31st December 2021 representing a slight increase of 0.2% from TZS 1.59 billion recorded as of 31st December 2020. The increase was mainly caused by the increase in retained losses to some of the reinsurance brokers.
Reinsurance brokers recorded revenue amounting to TZS 1.07 billion in 2021 representing an increase of 180% from TZS 0.38 billion generated during 2020. The huge increase was mainly caused by the increase in the collection of commission income for some of the reinsurance brokers.
Operating expenses constituted 66.9% of the company’s revenue. However, in aggregate reinsurance brokers incurred a loss of TZS 82 million in 2021 versus a loss of TZS 1.03 billion in 2020. The decrease was due to the reduction of administrative expenses and finance expenses of the local reinsurance brokers.
Tanzania Insurance Sector Outlook And Investment Opportunities
Tanzania’s economy and population are expanding rapidly, and so is its insurance industry.
The Bank of Tanzania (BoT) estimates Tanzania’s GDP growth rate to be 4.7% in 2022, and the African Development Bank (AfDB) projects a growth rate for 2023 of 5.6%.
Tanzania’s population has increased by 37% in the last 10 years to reach 62.7 million in 2022 and is expected to grow rapidly, between 2% and 3% per year over the 2022-2050 period. Its working class is graduating to medium-level income earners, therefore, the disposable income for services like insurance is high and increasing.
The most populated city Dar es Salaam is considered one of the fastest-growing cities in Africa and is steadily accumulating interest from investors hoping to offer insurance and capital to the city’s urbanizing population.
Furthermore, Africa’s and insurance industries are standing at a significant critical development juncture in the wake of the African Continental Free Trade Area (AfCFTA), which Tanzania ratified in 2021.
Tanzania’s Prime Minister, Hon. Kassim Majaliwa stressed that AfCFTA offers massive opportunities for the insurance business in an array of economic sectors including agriculture, minerals, oil and natural gas, and urged African insurance companies to cooperate and develop strategies to cover all risks on the continent.
He disclosed, in November 2022, that “the Ministry of Finance in collaboration with TIRA is preparing a guide for agriculture, livestock, and fisheries insurance to ensure that this large group gets served, especially given the challenges of climate change .”
“The Ministry of Finance in collaboration with TIRA is preparing a guide for agriculture, livestock, and fisheries insurance”
Kassim Majaliwa, Prime Minister of Tanzania
Within this framework, the Tanzanian government, via its Financial Sector Development Master Plan 2020/21 – 2029/30, has set ambitious goals for the next few years.
By 2030, it aims for 90% of the population to be covered by health insurance, for 50% of the adult population to have access to and use insurance products, for 20% of adults to have life savings products, and 10% of retirement plan beneficiaries to use annuity products. All in all, it expects that insurance penetration will reach 5% by the end of this period.
And the government has it very clear that it cannot alone achieve the goal of expanding insurance coverage to this degree without support from the private sector and technological innovation.
The Permanent Secretary (PS) of the Ministry of Finance and Planning Emmanuel Tutuba put it clearly: “This transformation can only happen if the insurance industry pivots itself on innovation and synergy. The first part is digitalization. The second part is for the players, re/insurers, insurance brokers/agents, bank assures, and all the players across the insurance value chain to work in synergy so as to achieve the economies of scale”.
“Transformation can only happen if the insurance industry pivots itself on innovation and synergy. The first part is digitalization. The second part is for the players across the insurance value chain to work in synergy so as to achieve the economies of scale”.
Emmanuel Tutuba, Permanent Secretary, Ministry of Finance and Planning
To stimulate and develop the market, TIRA has recently established, in association with the Association of Tanzania Insurers (ATI), the Oil & Gas Consortium to complement the ongoing mega oil and gas exploration projects in Tanzania. The consortium is expected to underwrite the oil and gas business in the country for the account and benefit of its members, increase the retention capacity of the Tanzanian market, and develop local technical skills in underwriting the said insurance business.
Tanzania is also about to enact universal health coverage, under the patronage of President Samia Suluhu Hassan who envisages a healthcare insurance scheme under which every Tanzanian citizen, or resident in Tanzania, should have health insurance, whether working or not.
The penetration of health insurance schemes is still low in the country, with only 32% of Tanzanians covered by health insurance, mostly served by the National Health Insurance Fund (NHIF), a Government entity under the Ministry of Health (MOH) that provides compulsory enrollment arrangement to public servants. Meanwhile, just 1% of health coverage is provided by private health insurance schemes.
“We are aware of the challenges and weaknesses of our health insurance fund. Therefore, we have taken the necessary measures to ensure that the institution that will be responsible for the universal health coverage scheme will be stable and guided by new legislation, regulations, and policies through which Tanzanians will be able to access healthcare any time they need it,” President Samis said.
“Tanzanians will be able to access healthcare any time they need it.”
Samia Suluhu Hassan, President of Tanzania
This means that every Tanzanian citizen, or resident in Tanzania, should have health insurance, whether working or not, which will take care of their health here. That law is currently being discussed in parliament. Once it is passed and enacted by President Hassan, it will be enforced possibly in 2023 after six months of transition to prepare for the implementation.
TIRA has also been introducing new mandatory covers, engaging with insurance companies and intermediaries to deploy awareness programs, and developing new products which are in line with the needs of the people. And in 2022, it issued new guidelines on the Takaful Operational Guidelines (Islamic Insurance), untapping the potential for sharia-compliant products in Tanzania.
TIRA has also issued a guideline for actuarial function in 2018 to force all insurance companies in Tanzania to establish an actuarial department. Many local insurance companies rely on foreign experts and did not see the importance of having a local actuarial department, but the new rules force them to use local independent experts. The Association of Tanzanian Insurers (ATI) appealed to the regulator to get an extension to establish a workable actuarial department and TIRA agreed, giving up at the end of December 2021 for insurance companies to appoint a statutory actuary, independent from the company, to look into the affairs of the firm. But local expertise is still not entirely there, as the ATI Chairman Khamis Suleiman explains: “We don’t have a local certified independent actuarial specialist in Tanzania, and the few experts are already employed by various companies.”
The results of these initiatives to transform and expand the insurance market are expected in 2023. “In 2023, we expect to see many positive results such as discipline in the market, increased growth, and the number of insurance users will increase due to various platforms that are legally allowed to sell insurance products,” said TIRA’s Commissioner General Dr. Baghayo Saqware.
“In 2023, we expect to see the number of insurance users to increase due to various platforms that are legally allowed to sell insurance products.”
Baghayo Saqware, Commissioner General, Tanzania Insurance Regulatory Authority
In the meantime, the preliminary results of some companies for 2022 clearly highlight growth trends, supported by the continued economic and population growth, awareness and sensibilization campaign, and the introduction of tailor-made insurance products.
General Insurance
Sanlam, among the largest insurer in the country, posted strong performances in 2022. “We experienced a growth of 25% in motor insurance. Microinsurance and smaller insurance premium coverages are being very profitable. Here the distribution channels make the growth, namely banks, agents, and digital platforms,” explains its CEO Khamis Suleiman.
“Microinsurance and smaller insurance premium coverages are being very profitable. Here the distribution channels make the growth, namely banks, agents, and digital platforms.”
Khamis Suleiman, CEO, Sanlam
Mo Assurance, which is among the companies which had the highest levels of underwriting profits in 2021 (TZS 2.2 billion), indicates that its performances are being good in 2022. “Our top line has grown by 15%, and our profits have grown by 5%. Our biggest growth has been in the motor and marine line of business, which have been profitable,” says its CEO Gregory Fortes.
He also agrees that microinsurance is the way forward, i.e., cheaper products for the masses to afford.
As for motor insurance, for ICEA Lion General Insurance too this is is the product that grew the most in 2022. “The production for 2022 was TZS 18.7 Billion in comparison to 17.2 Billion in 2021. Also, domestic package and contractors all risk have proven to be the most profitable products,” explains its head of marketing Davis Mwijage.
The company expect to grow its business by 33% in the next few years and expected the growth to come mostly from the motor and domestic insurance, and plans to add more selling point as well as increase the use of intermediaries.
Life Assurance
Life assurance is expected to grow strong, as shown by the exciting performances of Sanlam Life, Tanzania’s largest life insurer, in 2022. “Our revenues grew by +48% and our profits equally followed this trend. The growth was at the back of an improved operating environment post Covid-19. Our Credit Life Insurance business line saw the highest growth driven largely by increased lending in the banking environment,” explains its CEO Julius Magabe.
“In 2022 our revenues grew by +48% and our profits equally followed this trend. Our Credit Life Insurance business line saw the highest growth driven largely by increased lending in the banking environment.”
Julius Magabe, CEO, Sanlam Life
Reinsurance
Clause 29 of Circular 55/2017 requires life assurance businesses to be locally placed by 2023. This is expected to be a boon for local reinsurance companies.
“However, from the very nature of insurance, not every risk can be 100% retained in-country; there will be risk exposures that even local reinsurers will have to seek retrocession support externally,” Magabe stresses, adding that “being the leading insurer in Tanzania and part of the largest Pan African Insurer – Sanlam, makes us well positioned to offer the solutions required by any investor coming into Tanzania.”
New Products
Magabe also advocates for other classes of insurance business to be made compulsory like household insurance and group life insurance for employees. “Loss of lives and shelter have a significant negative economic impact on communities, and we need to start somewhere to grow a culture of ownership in financial protection,” he explains.
In this regard, insurance brokers and agents play a key role. They ensure competition among underwriters in the market, push their innovation efforts, undergo market intelligence and forecast environmental changes, and introduce tailor-made innovative insurance products together with insurance companies.
A concrete example of that is Howden Puri, a broker that in March 2022 launched, with the backing of Sanlam, Hifadhi Biashara, a new microinsurance policy for small business owners. In addition, the policy is managed through a mobile platform, for easy and cost-efficient access for the insurer.
Digitalization
New technologies and the digitization of distribution channels are critical to increasing insurance’s uptake.
“Spur in the uptake of insurance products can only happen by embracing digital and other non-conventional ways of distribution, using multiple channels such as MNOs, banks, fintechs, insurtechs, etc. to reach the end consumer. The regulator should offer an environment where innovation in this space is encouraged and supported. I believe that opening up the distribution channels for insurance will have a significant impact on driving penetration over the next 5 years and we have started seeing the signs already. A lot of innovation is happening in the non-conventional distribution space, delivering products to consumers who for many never thought they will ever consume insurance at such affordable rates,” says Magabe.
Newcomers and Consolidation
The number of insurance companies, and most lately reinsurance companies, has been growing progressively.
Dr. Saqware points out that “the number of insurance companies licensed in Tanzania seems big, but compared to the population, insurance is highly encouraged, particularly in medical insurance and reinsurance as we have few of them.”
However, some expect a degree of merger and acquisitions as there are many smaller companies, and the market requires quality, not quantity.
In fact, this may affect not just smaller players. In May 2022 German multinational financial services Allianz announced that it had completed the acquisition of a majority stake (51%) in the Jubilee General Insurance Company Tanzania, the largest in the country. The transaction is part of an agreement signed with Jubilee Holdings Limited (JHL) in September 2020, for Allianz to become the majority stakeholder in Jubilee Holdings’ short-term general insurance business (property and casualty) in East Africa, namely Kenya, Uganda, Tanzania, Burundi, and Mauritius.
Consequently, it is fair to expect both newcomers to enter the market and consolidation to take place in the years to come.
Investment Framework
In addition to the obvious opportunities driven by its strong economic and population growth, Tanzania enjoys political stability and clear laws that protect investors.
And in 2018, the Ministry of Industry, Trade, and Investment released The Blueprint For Regulatory Reforms To Improve The Business Environment to provide a guide for achieving the industrialization dream of creating, in the shortest period possible, the required business-enabling environment where the government and the private sector work hand in hand in realizing the dream. It seeks to put in place a framework that enables the review of the business-enabling environment (BEE) for an improved business climate in Tanzania.
Furthermore, the country is the only one to be part of the East African Community (EAC) and the Southern African Development Community (SADC). The business protocols in place make Tanzania a regional platform to enter and serve southern and eastern Africa.
All these factors combined provide room for expansion and investments.
According to Suleiman, insurance penetration can grow to 2.5% in five years, with star products being motor, and engineering to mitigate construction risks. “We collected TZS 911 billion in 2021 but our potential is twice as much,” he concludes.
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