* Stronger regulation, digital transformation, and financial inclusion are fueling growth and restoring trust in the industry
By Peter Nyanje
Tanzania’s insurance sector has recorded notable growth and transformation since 2021, driven by regulatory reforms, market innovations, and increased awareness of risk protection among citizens, thanks to tight oversight. According to the Tanzania Insurance Regulatory Authority (TIRA), – the national insurance sector oversight body – the sector’s performance between 2021 and 2024 reflects an encouraging trajectory that has positioned insurance as a critical driver of financial inclusion and economic stability.
Speaking to editors in Dar es Salaam today August 18, 2025, the Commissioner of Insurance, Baghayo Saqware, noted that between 2021 and 2023, Tanzania’s insurance market recorded consistent double-digit growth in gross written premiums, rising from TSh 911.5 billion in 2021 to over TSh 1.25 trillion by the end of 2023.
This surge has been supported by a growing appetite for life insurance products, increased penetration of general insurance, and regulatory measures aimed at ensuring compliance and protecting policyholders, he said.
“Insurance is no longer a luxury; it has become a necessity for households, businesses, and government institutions alike,” said Mr. Saqware. “We are seeing improved confidence in the industry, and this is a direct outcome of reforms to strengthen governance, solvency requirements, and consumer protection.”
Digital transformation and financial inclusion
According to the Commissioner, a major milestone in recent years has been the digitalisation of insurance services. Many insurance firms have embraced online policy issuance, mobile premium payments, and digital claims management systems.
He said this has made insurance more accessible, particularly to people in rural areas who were previously excluded from formal financial services.
For instance, microinsurance products, often bundled with mobile money services, have enabled low-income earners to secure affordable cover for health, agriculture, and small business risks.
Mr. Saqware noted that the government has also integrated insurance into key economic sectors. Mandatory motor vehicle insurance, health insurance expansion, and agricultural insurance schemes have widened the coverage net.
By 2023, he said, insurance penetration had risen to 1.68 percent of GDP before it increased to 2.1 percent last eyar, a notable improvement though still below the African average of 3 percent.
“In fact, in East Africa, we are second to Kenya in this aspect,” he said noting that the plans on card plans to see insurance sector in the country reached 3 percent of GDP by 2030.
Improved consumer protection
Since 2021, TIRA has tightened supervision of insurance companies, ensuring they meet capital requirements and comply with corporate governance standards.
Saqware said insurers are required to submit solvency margins and financial statements regularly, while consumer complaints handling has been strengthened through TIRA’s complaints unit.
“This has enhanced transparency and restored trust among policyholders,” he noted.
Future outlook
Looking ahead, Tanzania’s insurance sector is projected to sustain growth, spurred by continued economic expansion, infrastructure investments, and rising middle-class demand for financial security. TIRA has outlined plans to boost penetration to at least 3 percent of GDP by 2030, with strategies focusing on digital innovation, product diversification and stronger collaboration with banks and microfinance institutions.
