* From stricter compliance to digital monitoring, the regulator is on a mission to protect policyholders and boost confidence in insurance
By Peter Nyanje
While Tanzania’s insurance sector has made significant strides in growth and financial inclusion since 2021, it continues to grapple with persistent loopholes that threaten its stability and credibility.
The Tanzania Insurance Regulatory Authority (TIRA) has acknowledged these challenges and is moving decisively to address them through a mix of regulatory reforms, stricter enforcement, and sector-wide capacity building.
Key loopholes identified
Addressing journalists in Dar es Salaam today August 18, 2025, the Commissioner of Insurance, Mr. Baghayo Saqware, said one of the major challenges is low insurance penetration, which still lingers at less than 2 percent of GDP.
“Despite recent growth, millions of Tanzanians remain uninsured, limiting the sector’s potential to cushion households and businesses against financial shocks,” he said.
Another loophole, he said, is weak compliance among some insurers, particularly in meeting solvency requirements and timely settlement of claims.
Delayed or denied claims erode consumer confidence and discourage uptake of insurance products, is another shortcoming according to Mr. Saqware.
Fraudulent practices, such as misrepresentation of risks and inflated claims, have also strained insurers’ balance sheets.
TIRA has further flagged limited product innovation as a hindrance.
He said while micro-insurance and digital policies are on the rise, many insurers still offer generic products that do not fully respond to the needs of informal workers, smallholder farmers and small businesses – groups that make up the backbone of Tanzania’s economy.
TIRA’s strategic response
To tackle these gaps, TIRA has rolled out a comprehensive reform agenda. The regulator is tightening supervision of insurers by requiring quarterly financial disclosures, strengthening solvency monitoring, and imposing penalties on non-compliant firms.
“We are committed to ensuring that insurers remain solvent, transparent, and responsive to customer needs,” the Commissioner emphasised.
In addition, he said TIRA is investing in digital regulatory tools that will enable real-time monitoring of insurance transactions.
“This will help detect fraudulent activity, track claims processing, and ensure insurers are not overstating financial positions,” he said.
Boosting consumer confidence
Recognising that trust is the cornerstone of insurance, TIRA has reinforced its consumer protection framework.
Mr. Saqware said the complaints-handling mechanism has been upgraded, giving policyholders a more efficient avenue to resolve disputes.
The regulator has also launched public education campaigns to demystify insurance and encourage uptake, particularly among rural populations.
Expanding innovation and inclusion
To close the coverage gap, TIRA is encouraging insurers to roll out inclusive products such as weather-indexed agricultural insurance, affordable health insurance schemes, and SME-targeted covers.
Partnerships with fintechs and mobile operators are also being promoted to leverage mobile money platforms for premium collection and claims payouts.
Outlook
While challenges remain, Mr. Saqware said, TIRA’s proactive measures are expected to gradually seal loopholes and strengthen the credibility of Tanzania’s insurance sector. By pushing for innovation, enforcing compliance, and deepening financial literacy, TIRA aims to build a resilient insurance market that supports inclusive growth and contributes meaningfully to the country’s economic development.
