When it comes to insurance and its growth in Tanzania, the market is moving at snail’s pace. The major reason for the slow growth is the lack of accurate research and studies for ascertaining market trends. These market trends are needed for designing new insurance products for customers and stakeholders.
Mohamed Jaffer, President of Tanzania Insurance Brokers Association, says Tanzania carried out actuarial studies in 2013. There has been no study or research after that. This makes the data outdated and not relevant to the present market. These studies are mandatory insurance surveys conducted for the prediction of market trends. The research gives an insight into the possible occurrence of risks like accidents, the prediction of insurance growth and mortality rates in business.
Mr. Jaffer further states that the Tanzania Insurance Brokers Association has entered into an agreement with the internationally esteemed audit firm KPMG to train experts and carry out these studies for the insurance sector. He says that the University of Dar es Salaam conducts training experts in the above field. However, it lacks the capacity to incorporate the professional practices followed by companies specialised in the arena.
Getting insurance in Tanzania
Getting insurance in Tanzania depends upon the income of the applicant. Accessibility is also a vital factor. People in the urban areas have better access to medical insurance, both public and private. When it comes to healthcare, the insurance market in Tanzania is new and so it is still in its growing phase.
Efforts are on to expand the insurance coverage in Tanzania. However, these insurance schemes are intensely fragmented. Tanzania has 4 public insurance schemes namely, The National Social Security Fund or the NSSF, The Social Health Insurance Benefit or the SHIB, The Tiba Kwa Kadi or TIKA and the National Health Insurance Fund or NHIF. Recent survey and statistics reveal there are 7 private firms under the Tanzania Insurance Regulatory Authority or TIRA. They provide customers health insurance. Some insurance firms combine life insurance and health insurance.
Reality in Tanzania today...
In the recent decade, it has been seen that Tanzania has developed positively in many sectors. The economy is growing stronger. It is one of the strongest economies in Africa today. Unfortunately, this economic growth has not done much to reduce poverty. The primary reason being that people of the region are not aware or educated on the areas where this growth is significant like the mining sector. Till date, the major occupation of the people here is agriculture. This sector faces manufacturing and processing issues. It does not reduce the poverty of the nation and poses financial challenges on the people. Most of the adult population in Tanzania do not have access to financial services in the form of credit or insurance. There are a few families that are clients of banks. This trend triggers insecurity and the inability to plan for long-term wealth management and savings. The nation needs more awareness and education for spreading the word of insurance and access to banking services desperately.