Tanzania is a country in eastern Africa. The population of the county is diverse and includes various people of different ethnicity and religion. Tanzania is a growing country. The insurance sector of Tanzania is increasing slowly. In this article we will see about the history of Insurance sector in Tanzania and how insurance is now easily available in the country.
History of Tanzania insurance sector
Tanzania passed an insurance act in 1996 which liberalized the market and made way for private companies into the insurance market. Prior to that time the government’s National insurance corporation had dominance on the insurance sector. Once the private sector found way into the Tanzania insurance market, it attracted lots of attention from foreign and domestic investors into this sector. Most of the companies partnered with the local investors which helped them get the knowledge of the area and the local sector.
Forming of TIRA in Tanzania
For better operating of insurance company, Tanzania formed a regularly and supervisory body in 2009 called the Tanzania insurance regulatory authority or TIRA for short. This body provided general framework for the insurance company working in insurance sector. TIRA has focused on moving the Tanzania insurance sector to move away from old compliance based system to risk based system. TIRA also played an important role in spreading awareness amongst public about the importance of insurance and how it works. For this TIRA distributed insurance related material to general public.
TIRA has put in best efforts to make the insurance industry maintain professional standards. To maintain professional standards TIRA works closely with the insurance brokers and insurance companies to make effective changes. The efforts of TIRA are paying off and the public have started understanding the importance of insurance against loss that they might incur. As a result the insurance sector has shown a good growth in the past couple of years and has affected the country’s growing economy.
Insurance services in Tanzania
As we have seen there is growth in insurance sector in Tanzania, there have been more than 30 insurance companies and 112 brokers who are working in the market. TIRA ensures that each insurance company follows standards set by them.
- TIRA ensures that the company maintains the code of conduct.
- TIRA specifically focuses that the interest of the policy holder are protected and no one cheats them.
- The regulatory body makes the rule to get proper levies from premium and commission, these levies ensures the functioning of the regularly body is smooth.
- TIRA also ensures each broker; insurers and other agents follow the ethics code set up by TIRA. If these codes are not followed properly, TIRA takes appropriate actions against them.
As we can see that insurance industry has shown a good growth in Tanzania. With the regulation and guidance of TIRA, insurance sector and the companies in insurance sector will surely show a good growth. The companies from other countries should surely make investment in the local companies to help them grow.