Dar es Salaam. Tanzania’s insurance market experienced a significant growth of 19.11 percent in the past year, driven by the entry of new players and an expanding array of insurance products, as reported by industry experts. An unaudited report from the Association of Tanzania Insurers (ATI) revealed that Gross Premium Written (GPW) surged to Sh1.47 trillion in 2024, up from Sh1.24 trillion the previous year.
This growth can be attributed to various factors, including market expansion and the introduction of a diverse product range. Out of 30 non-life insurance companies, only three reported a decline in performance, while nearly all six life insurance firms registered positive growth.
Notably, CRDB Insurance Co Ltd, which launched two years ago, showcased remarkable progress, with its GPW increasing from Sh1.8 billion to Sh26.8 billion. Industry specialist Jumanne Mbepo commented, “While the growth rate is encouraging, it still falls short of the 22 percent target required for achieving a 5 percent insurance premium-to-GDP penetration by 2030.” Mbepo further highlighted that the influx of new insurance companies has significantly broadened market access and product offerings.
He pointed out the surge in demand for Islamic insurance, known as Takaful, marking an untapped opportunity in the market. “Life insurance has seen a rise of around seven percent in 2023, thanks to increased interest in both individual and group plans, particularly following the entry of new companies,” he added.
Optimism for the sector’s future remains strong, with experts like Dr. Anselmi Anselmi, managing director of Acclavia Insurance Brokers & Risk Consultants, emphasizing the role of economic stability and regulatory support in propelling growth. He projects that Tanzania’s insurance market could soon exceed the Sh2 trillion mark.
Dr. Anselmi highlighted the importance of targeted strategies, such as inclusive insurance, digital distribution, and regulatory incentives, to accelerate the sector’s expansion. He noted, “Strategic interventions in key economic sectors alongside regulatory support are essential to reach a premium volume target of Sh10 trillion.”
Additionally, he acknowledged the positive impact of President Samia Suluhu Hassan’s leadership in fostering an investment-friendly environment, which has greatly benefited the insurance sector. Industry experts have suggested several strategies to enhance the insurance landscape, including strengthening public-private partnerships, offering tax incentives on premiums, and enforcing mandatory insurance regulations.
With these initiatives, stakeholders are optimistic that Tanzania’s insurance sector will continue its upward momentum, contributing significantly to the nation’s economic development.
