Tira mulls agricultural insurance consortium

Tira will set guidelines and conditions on how the companies will work with the agents.

Tanzania's agricultural insurance sales were Sh1.3 billion in 2021 which was equal to 0.17 percent of the country's total insurance sales in the country.

The situation was blamed on the low ability of farmers to afford insurance premiums.

Limited technology and poor infrastructure for effective operation of agricultural insurance as well as non-availability of sufficient agricultural information to register insurance also contributed to the trend.

The consortium will be the second in the country, after the oil and gas that involves more than 20 insurance companies.

Currently, there are four companies that offer agriculture insurance.

Commissioner for Insurance, Dr Baghayo Saqware said yesterday at the fourth Insurance Agents Association of Tanzania (IAAT) annual general meeting that agents should seize opportunities in the agricultural sector that employs more than 70 percent of the working age population.

"Now, the ball is in your court, we will provide strategies to stakeholders to enable you grab those opportunities before the end of this year, so prepare yourself and set your strategies on how to seize them," he said.

He said the plans were part of the implementation of the government's decision to ensure at least 50 percent of Tanzania’s adult population has access to one insurance product by 2030.

He said the impact of the move were vividly seen as people's confidence in insurance continues to increase.

He also said the universal health insurance cover was also on the way, adding that the scheme will require agents to distribute products.

“It’s time to develop systems and strategies to seize those opportunities. I advise you to start sharpening your knife today, if you wait until the law is approved to start preparations you will be late and opportunities will be missed."

IAAT chairman, Mr Sayi Daudi said the enabling environment has contributed to the increasing number of insurance agents.

 Mr Daudi there were still several challenges that would need to be resolved, including the issue of fair competition in doing business among insurance stakeholders.

 "We admit that the agents are doing well, there has been great progress over the past year.

“We believe that a large number of graduates with insurance professions will join and self-employed instead of waiting to be hired," he said.