anzania Insurance Regulatory Authority (Tira) Director of Planning, Research and Market Development, Mr Zakaria Muyengi, signs the visitors' book at the 50th DITF as Alliance Insurance Corporation Limited Chief Executive Officer, Mr Rajiv Kumar, looks on. PHOTO | GADIOSA
Industry data shows that gross written premiums reached about Sh1.52 trillion in 2024, while insurance penetration stood at 2.08 percent of gross domestic product
Dar es Salaam. Tanzania’s insurance industry has been urged to prioritise building public trust, improving customer education and developing products that address real risks as low insurance uptake continues to leave households and businesses financially exposed.
Speaking at the 50th Dar es Salaam International Trade Fair (DITF), Alliance Insurance Corporation Limited Chief Executive Officer Rajiv Kumar said that although the insurance market has grown steadily, penetration remains low relative to the size of the economy.
Industry data shows that gross written premiums reached about Sh1.52 trillion in 2024, while insurance penetration stood at 2.08 percent of gross domestic product (GDP).
Mr Kumar said the figures suggest that many Tanzanians still lack insurance cover despite increasing exposure to risks such as fire, theft, road accidents, machinery breakdowns and medical emergencies.
“The opportunity is not simply to increase premium volumes. It is to bring more Tanzanians into the formal protection system and strengthen the country’s economic resilience,” he said.
He identified public awareness as one of the industry’s biggest challenges, noting that many people still view insurance as a legal requirement rather than a financial safety net.
According to Mr Kumar, insurers should explain products in simple Kiswahili using practical examples that customers can easily understand, particularly small businesses that are vulnerable to unexpected losses.
He also called for products tailored to the needs of different customer groups instead of a one-size-fits-all approach, saying demand is growing among small and medium-sized enterprises (SMEs), transport operators, contractors, manufacturers, schools and healthcare providers seeking protection against operational risks.
Mr Kumar said technology is helping improve access to insurance by reducing paperwork, simplifying policy administration and speeding up claims processing, but stressed that digital services should complement rather than replace personal customer support.
“We are digital first, not customer distant. Technology should simplify insurance while maintaining the human support customers need, especially when making claims,” he said.
He noted that digital claims platforms enable customers to report incidents, upload supporting documents and track claims without repeated visits to insurers’ offices, while data analytics helps companies assess risks more accurately and detect fraud.
Mr Kumar said discussions with visitors at this year’s DITF showed that customers are increasingly choosing insurers based on service quality, transparency and claims settlement rather than price alone.
“Insurance penetration will not increase through product availability alone. It will grow through trust, education and the customer experience,” he added.
