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
There are 33 insurance companies licensed to operate in Tanzania, 1 takaful (Islamic insurance) company, and 3 reinsurance companies.
The last entrant is CIC Insurance, the subsidiary of CRDB Bank, the largest in the country, which was licensed by TIRA in May 2023.
|4||Beema Star Insurance|
|8||CRDB Insurance Company (CIC)|
|12||Icea Lion Insurance|
|13||Insurance Group of Tanzania|
|14||Jubilee Allianz Insurance|
|15||Jubilee Health Insurance|
|24||National Insurance Corporation|
|25||Phoenix Of Tanzania Assurance|
|33||Zanzibar Insurance Corporation|
Takaful (Islamic) Insurance Companies
There is only one licensed takaful insurance company in Tanzania: Zic Takaful Company Limited, a subsidiary of the 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.
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|
|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|
|20||Swan Reinsurance PCC|
|21||The Hollard Insurance Company|
|22||Waica Reinsurance (Kenya) Limited|
Tanzania Insurance Intermediaries and Other Service Providers
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.
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.
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.
The key difference between bankassurance agents and insurance agents is that bankassurance agents are allowed to represent 3 to 10 insurers, while insurance agents
are limited to 1 to 3.
This combined with the banks’ networks (branch and e-banking) and large client base, has led to a fast increase in the number of bancassurance agents and their share of GWP.
As of June 2023, 30 bancassurance agents are licensed to operate in Tanzania compared to 23 in 2021 and 14 in 2020.
|1||Absa Bank Tanzania Ltd|
|3||Akiba Commercial Bank|
|5||Bank Of Afria Tanzania Limited|
|7||Crdb Bank Plc|
|8||Dcb Commercial Bank Plc|
|9||Diamond Trust Bank (T) Ltd|
|10||Ecobank Tanzania Limited|
|11||Equity Bank Tanzania Limited|
|12||Exim Bank Tanzania Ltd|
|14||Finca Microfinance Bank Limited|
|15||First Housing Finance Tanzania Limited|
|16||I & M Bank Tanzania Limited|
|17||Kcb Bank Tanzania Limited|
|18||Letshego Bank Tanzania Ltd|
|20||Mkombozi Commercial Bank|
|21||Mucoba Bank Public Limited Company|
|22||Mwalimu Commercial Bank Plc|
|23||Mwanga Hakika Microfinance Bank Limited|
|24||National Bank of Commerce limited|
|25||NCBA Bank Tanzania Limited|
|27||Stanbic Bank Tanzania Ltd|
|28||Standard Chartered Bank Tz Ltd|
|29||Tanzania Commercial Bank|
|30||Uchumi Commercial Bank Limited|
Insurance Digital Platforms
Local mobile operators and other licensed Digital Platforms sell insurance products in Tanzania.
|1||Axieva Africa Lab|
|3||I Link Limited|
|4||Imatic Technologies Limited|
|6||Macho Technologies Ltd|
|7||Ottimale Technologies Limited|
|8||Sandrox Company Limited|
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 were 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 American 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 a 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 American 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-thirds 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 the 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’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’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.