CRDB Bank Plc ventures into insurance business with new subsidiary

Arusha. CRDB Bank Plc has formally ventured into the insurance business with a new subsidiary. The lender becomes the first local bank to launch a full-fledged insurance subsidiary to be known as CRDB Insurance Company (CIC).

 This was announced here yesterday at an event at which the new company received its licence from the Tanzania Insurance Regulatory Authority (Tira).

 The licence was handed over by Tira director general Dr Baghayo Saqware in an elaborate ceremony at the Gran Melia Hotel in Arusha.

"CIC is a new entrant not only in the insurance industry but also in the financial markets," he said as he handed over the licence to CRDB managing director Abdulmajid Nsekela.

 He added that the launch of the insurance firm was another milestone for the lender, which is among the leading banks in the country.

 The establishment of the subsidiary would boost the country's desired goal of increasing insurance coverage among Tanzanians to 50 percent by 2030 from 18 percent at present.

 Dr Saqware further noted that the government has enacted legislation that seeks mandatory insurance coverage for buildings, construction projects, as well as health and transport services.

 With good takeoff and commitment in its first years, CRDB Insurance Company can turn out to be one of the best-performing insurance firms in the country.

 Speaking after receiving the licence, Mr Nsekela said the new subsidiary would initially offer 'general insurance' coverage.

 Its creation comes only weeks after the lender was licenced to commence its operations in the Democratic Republic of the Congo (DRC).

 According to Mr Nsekela, the CRDB Bank has been involved in the insurance business for the past 15 years through an agency but has now been licenced to operate a fully-fledged insurance subsidiary.

 "This is a great boost not only to us but also for an improved or conducive environment for the insurance business in the country", he pointed out.

 He added that although CIC was licenced to offer 'general insurance', it would strive hard to be more innovative in discharge of its duties.

 He assured Tira that the bank was ready to see improved insurance services and that it would build an effective network of agents, brokers and other players.

On his part, the managing director of CRDB Insurance Company Limited, Wilson Mnzava, committed the firm to serving the public diligently.

 He hinted that one of the areas of focus will be the agricultural sector, where, according to him, innovative measures are being designed for the sector.

 Mr Mnzava said individuals, public and private institutions and companies are invited to buy shares in the newly licenced insurance subsidiary.

 "We are fully prepared to serve the general public. We will work closely with Tira to meet the expectations of Tanzanians and the industry", he explained.

 According to the Tira report for the period ending December 2022, there were 32 insurance companies licenced in Tanzania. CRDB Insurance firm becomes the 33rd.

 Also, until December last year, there were 1,500 insurance agents operating in the country and 32 banks offering insurance services. Five companies offered digital insurance services.

 Statistics show that the insurance business accounted for 1.68 percent of the Gross Domestic Product (GDP). The target is to elevate this to three percent by 2030.

 Further statistics indicate that the insurance premiums for last year (2022) totalled Sh. 1.154 trillion, up from Sh. 931 billion the previous year (2021).