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`Life insurance sector growing at snail`s pace`

15th March 2012
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The number of Tanzanians registered in life insurance is has been growing at a very slow pace hence there is a need to sensitise more people to join the scheme.

Out of 44 million citizens, there are less than 3 million registered for life insurance.

This was said by African Life Insurance chief executive officer Julius Magambe when addressing journalists at the Chief Executive Officers’ Roundtable (CEOrt) meeting in Dar es Salaam on Tuesday.

Magambe said that the 3 million people who get life insurance, are in the formal sectors adding that there was none from the informal sectors.

He added that the only challenge in life insurance is that there is little awareness of the people, thinking that the service is very expensive.

He added that that those who work in construction companies come to face difficulties when they incur injuries.

“In the construction sector, many workers especially Tanzanians have no life insurance because many of them are not aware of the importance of having it,” he said.

Magambe however said that of late there has been an influx of insurance companies from outside the country because in Tanzania there is a huge potential for many firms to invest.

Responding on the question why Tanzanian companies do not invest outside the country, like in Kenya and Uganda, he said that in those countries already there is congestions while the potentials are few compared to Tanzania.

He furthermore added that in Tanzania the market still offers opportunities for insurance investment but the only challenge is how to reach the people with low understanding of the industry.

For his part, the chairman and managing director of Group Six International Limited, Janson Huang, said that Tanzania is blessed by a lot of potentials which have attracted Chinese investors to come for invest.

Huang said that Group Six International Limited is a Chinese company that has invested in Tanzania in several sectors such as in mining, construction, agriculture, tourism and was doing well due to availability of potentials.

He added that though his company contributes much to the national economy, but it has encountered some hindrances.

Among them, are poor infrastructure and power shortage, he said, adding that that if they are improved then productivity would grow very fast.

SOURCE: THE GUARDIAN
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