THE public has been encouraged make use of a wide range of insurance products and services which are fundamental in improving living standards and contributing to the country’s economic growth.
Tanzania Insurance Regulatory Authority (TIRA), Manager Market Development, Salum Yungwa told journos during the training held in Dar es Salaam on Monday that Tanzania insurance industry has varied products and services to meet people’s needs and support economic growth.
“Insurance services and products enable to mitigate loss, financial stability and promotes trade and commerce activities those results into economic growth and development,” he said noting further the critical role that insurance plays in sustainable growth of the economy.
Some of the insurance products offered insurance companies in Tanzania are life insurance or personal insurance, property, marine, fire, liability, guarantee and professional indemnity insurance covers.
Insurance sector plays critical role and supports the government endeavours to maintain and build high quality infrastructure projects that will contribute to an economy’s growth potential through efficiency gains and improved productivity.
The insurance industry continues to play its strategic role on the national economy by making appropriate compensation against risks as well as contributions to the mobilisation of financial resources for sustainable economic development.
According to the TIRA quarterly performance report for the three months period ending March this year, the total volume of business in terms of gross premium written for both general and life assurance businesses increased by 15.2 percent to 237.40bn/-in the reference period from 206.06bn/- of the corresponding period 2018.
“This implies that during this period, the market recorded favourable results where development and operationalization of the new systems in place marketing and continued public awareness programs significantly contributed to these positive developments,” stated the report.
The General insurance product mix according to the report shows, that a share of motor insurance business at 29.9 percent, Health by 23.1 percent, Fire 22.3 percent and Accident 9.2 percent.
Other classes shared the remaining 15.5 percent of the total General insurance business while Life assurance, on the other hand, was dominated by Group Life class at 77.6 percent, followed by Individual Life 22.3 percent.
The training facilitator, Elia Kajiba, said insurance makes it unnecessary to set aside a large amount of money to pay for the financial consequences of the risk exposures that can be insured thus allowing efficient use of the resources.
Mr Kajiba said the insurance sector provides capital into productive investments as well as enabling mitigate loss, financial stability and promotes trade and commerce activities those results in economic growth and development.
“Insurance provides financial security, assistance for education, unemployment, birth of a baby, sickness and medical expenses, retirement and funerals,” he noted.