MOST insurance firms in the country are located in urban areas, thus denying rural population accessibility to insurance products.
The Resolution Insurance Director General, Ms Maryanne Mugo, said in an interview with the ‘Daily News’ in Dar es Salaam yesterday that penetration of insurance industry into the rural areas was still very low.
“Lacking efforts to expand insurance services into the underserved rural population is highly contributing to slow growth of insurance companies in the country,” she said.
According to the Tanzania Insurance Regulatory Authority (TIRA), Tanzania insurance industry consists of about 31 insurance companies, 124 insurance brokers and one insurance agent operating in the market.
Similarly, she said the major challenges facing Tanzania are low public awareness on the importance of insurance and the perception by the public that insurance premiums are very costly.
She believes that private insurance companies will prevail as they still have a number of customers who are working on private sectors, but not only that, she thinks Resolution Insurance shall be a market leader especially in micro-insurance, innovation and increased market share in the next 5 years.
Despite the efforts, she said there is need for the government to be involved in public awareness education so as to know the importance of insurance in their lives and their businesses. Also she called for the need of insurance premium to get tax relief especially for individuals with life policies.
In order to ensure proper services to all Tanzanians, her office has opened branches in other regions like Arusha while plans are underway to open branches in Mwanza, Dodoma and Mbeya.
“In this matter, we as insurers have taken initiatives of enabling young insurers to serve this sector by offering them internship programmes and other facilities that would at least shape their skills,” she added.
She as well added that her company has been supporting health initiatives by donating different health needs as well as working closer with different stakeholders.