THE Tanzania Insurance Regulatory Authority (TIRA) is planning to establish a database in the Lake Zone regions to track fraudulent insurance companies and brokers.
The major objective of such an initiative is to take legal action against those found to indulge in the malpractices.
Officiating at the opening of an annual general meeting for the insurance stakeholders from the Lake Zone regions yesterday, Insurance Commissioner, Dr Baghayo Saqware, said the ultimate goal of establishing the data was to boost the industry’s contributions to the country’s economy.
He said insurance companies and brokers would only contribute to the country’s economic growth if they maintained their credibility and trustworthiness.
TIRA was established under the Insurance Act No.10 of 2009 for the major objective of regulating and supervising insurance sector with its function being the registration of insurance agents, insurance assessors, loss surveyors and insurance brokers and insurance brokers.
He urged participants to use the economic opportunities available in Mwanza and the nearest regions by marketing their insurance products, including finding markets at both in the banking institutions and in the private sector.
Giving an example, he said Mwanza Region was ranked second in the country in terms of having the big number of people with access to financial services after Dar es Salaam, wondering why they were not capitalising on the emerging and existing economic opportunities. “Please use this opportunities in order to graduate from brokers to insurers. Don’t be obsessed with hand to month business,” he told participants.
According to him, in developed countries such as the United States insurance industry, was the leading sector in attracting business followed by the banking sector.
On his part, the TIRA Lake Zone Manager, Mr Sharif Ali asked insurance service providers to sensitise their clients on the importance of insuring their life and property. “Success in this business comes from cultivating trust in service provision.
If we win public trust we will able to expand the insurance coverage and eventually increase insurance revenues,” he said. He added that insurance had significant impact on the country’s economic growth because it provided compensation during disasters to those hit, bringing their living conditions back to normal.
“Insurance helps access to health services easily if a person joins any health insurance fund”, he said.
Speaking about challenges, he said the insurance market in the region was dealing with fraud among stakeholders and failure by agents and brokers to present insurance sales, causing insurance companies to fail to pay claims lodged.