Govt calls on insurance sector to embrace innovation, advanced technology

DODOMA: THE government has called on the insurance sector to embrace innovation and advanced technology to stay abreast of the country’s evolving economic landscape and seize emerging market opportunities.

This push for modernisation aligns with the broader economic reforms and favourable investment climate driving increased demand for insurance services.

At the 2024 Annual Insurance Day, hosted over the weekend by the Insurance Institute of Tanzania (IIT) in collaboration with the Tanzania Insurance Regulatory Authority (TIRA) and other stakeholders, Minister for Community Development, Gender, Women and Special Groups, Dr Dorothy Gwajima underscored the critical role of technology in propelling sector growth.

“The government is dedicated to attracting investors by creating conducive environments and implementing efficient investment procedures. In this context, the insurance sector must harness these opportunities by prioritising innovation and technology,” Dr Gwajima asserted.

Addressing this year’s theme, “Inclusive Insurance: Products that Meet Demand and Technology Distribution,” Dr Gwajima highlighted how it fosters accelerated development within the insurance sector, aligning with technological advancements and the increasing use of ICT.

She also urged TIRA and other insurance stakeholders to oversee the Universal Health Insurance initiative, championed by President Samia Suluhu Hassan, ensuring it benefits to all Tanzanians.

Zanzibar’s Chief Secretary, Engineer Zena Ahmed Said, encouraged service providers to continue educating both the public and government leaders about insurance.

She recommended using real-life examples to demonstrate the value of insurance and commended providers for expanding their product offerings while urging them to maintain a spirit of innovation.

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Eng Zena set ambitious targets for the sector by 2030, including achieving 50 per cent insurance coverage for the population and ensuring that 80 per cent of people have a solid understanding of insurance.

TIRA’s Commissioner of Insurance, Dr Baghayo Saqware, noted the significant opportunities for the insurance sector due to rising demand and favourable business conditions.

“I urge you to become ambassadors in educating people about insurance and encouraging citizens to invest in the sector,” Dr Saqware said.

He said the sector’s contribution to the country’s Gross Domestic Product (GDP) rose from 0.56 per cent in 2021 to 1.68 per cent in 2022.

This increase is attributed to the favourable investment environment, including robust laws, regulations and guidelines governing the insurance market.

He also highlighted a growth rate of 12.8 per cent per year, with gross insurance sales rising from 691.9bn/- in 2018 to approximately 1.2tri/- in 2022.

Regarding the main objective of Insurance Day, Dr Saqware emphasised its role in uniting insurance stakeholders to promote insurance use among Tanzanians and strengthen relationships between the Authority, stakeholders, and the public.

“Significant achievements require strong collaboration and the involvement of key stakeholders in the insurance sector.

Our primary goal is to ensure a transparent insurance market that adheres to professional standards and benefits the nation,” he added.

IIT Interim President Margaret Ikongo addressed the substantial changes in the insurance industry driven by shifting customer priorities, technological advancements, demographic changes, geopolitics and climate change.

“These changes are further amplified by our interconnected global village,” she said.

Several insurance companies were recognised for their contributions to Insurance Day celebrations, including Sanlam, NIC, NMB, Jubilee, Metro Life, Heritage, Alliance, the Association of Tanzania Insurers, Sky Reinsurance, ZEPRE, Tan-Re, ARiS, Britam, EARe, Grand Re, First Assurance, Icea Lion, ITL, Meticulous and Mayfair.