The master plan has set ambitious goals for the insurance sub sector within a decade to reach 50 per cent population coverage of adult population, 5 per cent insurance assets to GDP, 3 percent of gross life premiums/GDP and 2 percent of gross non-life premiums/GDP.
Speaking during the official opening of the annual conference of the Tanzania Insurance Brokers Association (TIBA) in Dar es Salaam yesterday, Permanent Secretary in the Ministry of Finance and Planning Emmanuel Tutuba said the government alone cannot achieve the goal of expanding insurance coverage to all people but only with support from the private sector.
“I know that this platform is important whereby the entire insurance brokerage fraternity come together to jointly reflect on the industry’s achievements and challenges, and thereby establish a strong basis to forge ahead, so make sure you discuss and come up with strategies to further boost insurance development in the country,” he said.
He noted that the theme of this year’s conference resonates very well with the direction of the sixth phase government under the leadership of President Samia Suluhu Hassan regarding industrialisation.
He said that insurance is key to the country’s financial inclusion agenda considering the fact that the bulk of growth of the financial sector in the coming decade is hinged on insurance.
“The master plan also seeks to ensure that 10 percent of beneficiaries of retirement plans use annuity products by 2030, ten (10) new demand driven insurance products developed by 2030, 90 per cent of the population have health insurance by 2030 and 20 percent of the adult population have life savings products.
He further said the plan also works to ensure 80 per cent of the population are aware of insurance matters by 2025, 10 per cent total insurance premium contributed by agriculture insurance by 2030 and eight affordable insurance distribution channels developed by 2030.
“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 assurers and all the players across the insurance value chain to work in synergy so as to achieve the economies of scale,” he noted.
The PS however said achieving inclusive insurance inevitably requires concerted efforts and coherent strategies to address market and regulatory factors that inhibit access to insurance for the majority of the underserved or un-served market segments.
“As we work to improve insurance penetration rate in Tanzania, there will be challenges along the way. Our response should not be to avoid challenges; rather we should collaboratively and continuously find means and ways of overcoming such challenges,” the PS said Tutuba said the government will seek to enhance the industry’s underwriting capacity with the view to improving the insurance sector’s contribution to the national economy.
In this regard, special thrust will be on enhancing capital requirements and human skills development as well as establishment of consortium and/or pools for specialized and large risks for example oil and gas as well as aviation.
He directed the commissioner of insurance to initiate the process of establishing the consortiums.
The PS further said: “I wish to assure insurance sector that the ministry will work with TIRA to clearly define roles of each player in offering insurance services, institute guidelines to oversee operations in the market, adjust regulations to ensure fairness among players, adjust policy to support penetration, develop guidelines and regulations to properly guide emerging channels, ensure harmony in the market that way encourage growth through an integrated distribution channels framework, ensure cohesion among players to guarantee increased penetration and spearhead collective efforts towards insurance awareness to the public.”
TIBA President Amir Kiwanda said the conference has brought a number of insurance stakeholders from in and outside the country to collectively chart effective ways to boost the insurance industry, expanding its services to reach more people.
It has drawn participants from Kenya, Uganda, Rwanda as well as representatives from the Organisation of Eastern and Southern Africa Insurers (OESAI).
Kiwanda said the conference provides a platform for information sharing and collaborative forum for insurance stakeholders that include regulators, registrants, educational institutions and other special groups with interest in the insurance industry.
Snehal Sneth, chairman of organising committee said the preparation of the event has obtained support from almost 31 sponsors including the National Insurance Corporation (NIC) as main sponsor. Assemble Insurance, Jubilee Insurance and Tan Reinsurance Company as ‘Gold Sponsors’.
He thanked all the sponsors for their dedicated support to facilitate advance of the insurance agenda in the country.