Tanzania Insurance Regulatory Authority’s Director of Planning, Research and Marketing, Zakaria Muyengi said in Dar es Salaam this week when launching CRDB’s insurance mobilization campaign that big banks and financial insurance have an important role when they collaborate with insurance company to offer Bancassurance services to customers.
Muyengi said the CRDB campaign is an important vehicle to speed up the penetration of insurance services in the market from the current meagre 15 percent to at least 50 percent as per the National Financial Sector Development Plan of 2020/21 to 2029/3 which was unveiled in September last year.
“Statistics show that only 15 percent of Tanzanians use some form of insurance cover which is very little compared to other African countries such as South Africa,” Muyengi said adding that the government was to see contribution of the industry increase from the current one to three percent during the same period.
He said the government through Tira is continuing to push for speed insurance services deployment through the Bancassurance initiative which is tailor made to allow banks work with insurance companies to provide services and products to the public.
“I know that CRDB Bank has many years of experience in selling insurance products to customers in the market because, unlike your peers, you established an insurance broker many years ago,” the Tira Director added while pointing out that CRDB has a good relationship with insurance companies.
He commended the bank’s management and staff for innovative products launched in the market such as Kava Assurance and motor vehicle insurance being sold digitally through SimBanking which encourages more people to join.
Muyengi further commended CRDB for coming up with the public sensitization campaign on insurance services saying Tira wants all stakeholders to do the same and ensure that people are aware that insurance is a necessity in life.
Speaking at the event, CRDB Group CEO and Managing Director, Abdulmajid Nsekela said the campaign dubbed, ‘Enjoy life, insure what you value,’ is aimed at sensitizing and mobilizing the public to buy insurance cover to protect against risks.
Nsekela said the campaign is aligned with the government’s plans to increase insurance penetration in the market through sensitization of the public. “As a genuine public bank we understand the role that we need to play in supporting government plans to increase insurance coverage to 50 percent,” he said.
He said lack of knowledge on the importance of insurance cover among the people is a major hindrance towards increased penetration hence the need to invest in sensitization campaigns that will public understanding of the services.
“In a short while, we will also start our ‘Nipo mtaani kwako’ campaign which involves our officials going to the field to sensitize the public on the importance of banking services and convince them to open accounts, this year we will also include insurance in the package,” the CRDB chief noted while revealing that the bank through its insurance brokerage firm offers all types of life and non-life insurance.