THE Tanzania Bankers Association (TBA) has proposed innovative strategies to expand the country’s inclusive insurance services.

Theobald Sabi, the National Bank of Commerce (NBC) managing director and TBA chairman, made the proposal here over the weekend as a speaker for the 2024 Insurance Day forum on inclusive insurance, examining responsive products and distribution through technology.

Dr Dorothy Gwajima, the Community Development, Gender, Women and Special Groups minister, graced the event hosted by the Insurance Institute of Tanzania (IIT), working with the Tanzania Insurance Regulatory Authority (TIRA) and other stakeholders.

The TBA chairman stressed the need for transparent claims processes to build public trust in the insurance industry, pointing at the need for robust fraud and risk management systems to support the sector’s growing digitization.

“With digitization comes an increase in cyber fraud. Strengthening risk and compliance measures is urgent,” he stated, underlining the positive transformations brought about by technological advancements in the insurance sector.

Technology, public awareness and strategic partnerships among key stakeholders, including banks and mobile network operators are crucial issues in accelerating access to inclusive insurance services, he declared.

Citing available data, he said that at present only 10 percent of Tanzanians are engaged in insurance, unveiled by FinScope 2023 report, thus technology-driven solutions are essential to bridging the gap.

As of August 2023, Tanzania’s insurance sector was contributing 1.68 percent in the Gross Domestic Product (GDP), one of the lowest rates in the region, he further noted, reaffirming the association's commitment to supporting the sector’s growth.

“Inclusive insurance is not just a possibility, it is an imperative,” he told the audience, hailing the government and industry stakeholders for their efforts to increase this portion of the public.

The aim is to attain three percent of those covered by insurance by the end of this year and up to five percent by 2030, thus aligning with global benchmarks, he said, acknowledging challenges such as low disposable incomes.

There is also a limited savings culture and negative public perceptions of insurance, to which TBA proposes a multifaceted approach to address these issues, like enhanced financial education campaigns and the development of affordable insurance products tailored to low-income groups.

“By leveraging technology, especially through mobile platforms, utilizing data for informed decisions and collaborating with stakeholders, we can significantly improve Successful examples include a mobile phone insurance rollout by Vodacom (T) Ltd and a similar effort by the National Insurance Corporation (NIC).

The two have demonstrated the effectiveness of mobile-based insurance services in expanding access, he said, affirming that NBC contribution to the growth of the insurance sector was substantial.

“We take pride in being a major player in the bancassurance sector, contributing 18.3 percent of the market’s gross written premiums (GWP) and driving 45.7 percent of life insurance payments over the last four years,” he said.

The minister underscored the critical role of technology in propelling sector growth, calling on the insurance sector to embrace innovation and advanced technology to “stay abreast of the country’s evolving economic landscape and seize emerging market opportunities.”

The government is dedicated to attracting investors by creating a conducive environment, with efficient investment procedures, where the insurance sector needs to harness these opportunities by prioritising innovation and technology, she stated.

Technology fosters accelerated development in insurance, aligned with the increasing use of ICT, she said, urging the regulator and other stakeholders to oversee the Universal Health Insurance initiative.

It has been championed by President Samia Suluhu Hassan in staking out its benefits to all Tanzanians, she stated, while Zena Ahmed Said, the Zanzibar chief secretary, said service providers have to conduct outreach exercises on both the public and public institutions about insurance.

Using real-life examples to demonstrate the value of insurance will help, she said, applauding service providers for expanding product offerings, insisting on the need to maintain a vibrant spirit of innovation.

She set ambitious targets for the sector by 2030, where she said it can achieve 50 per cent insurance coverage for the population. It could also ensure that 80 per cent of people have a solid understanding of insurance, she added.