Minister of Finance, Ambassador Khamis Mussa Omar (MP), has described the insurance sector as a critical driver of Tanzania’s economic and social stability, citing its role in protecting assets, supporting investment and cushioning citizens and institutions against financial shocks.
The minister made the remarks during a meeting with a delegation from the Tanzania Insurance Regulatory Authority (TIRA), led by the Commissioner of Insurance, Dr Baghayo Saqware.
The discussions focused on the performance of the insurance industry, its contribution to the economy and strategies to strengthen public participation.
Ambassador Omar said the insurance sector is a key pillar of economic resilience, as it protects citizens and businesses from disasters and other risks while promoting sustainable development.
He noted that a strong insurance industry builds confidence among investors, safeguards both public and private resources and reduces the financial burden on citizens when emergencies occur.
He commended TIRA for its role in regulating the sector and urged the authority to continue executing its mandate in line with the Insurance Act, Chapter 394.
He emphasized the importance of protecting policyholders’ rights, expanding public awareness on insurance and ensuring the market remains safe, sustainable and resilient.
“The insurance sector must continue to serve the public by protecting stakeholders’ rights, providing education and addressing complaints, while ensuring the market grows in a stable and sustainable manner,” the minister said.
Presenting an update on the sector’s performance, Dr Saqware said the insurance industry has maintained strong growth, averaging over 10 percent in the past four years.
He noted that insurance premiums rose to TZS 1.52 trillion in 2024 from TZS 1.24 trillion in 2023, representing a 20.2 percent increase.
He added that the sector’s contribution to the national economy increased from 2.01 percent of GDP in 2023 to 2.08 percent in 2024.
Other indicators, including claims payments, investment, employment, registration of service providers and the number of insured beneficiaries, also recorded steady growth.
Dr Saqware further said TIRA has continued to generate revenue for the government, paying TZS 5.1 billion in dividends in the 2024/2025 financial year, up from TZS 3.5 billion in 2023/2024, an increase of 68.6 percent.
The meeting also reviewed challenges facing the insurance industry and explored opportunities to expand insurance uptake among citizens and institutions.
Both sides underscored the need for continued legal and regulatory reforms to ensure insurance laws and regulations keep pace with economic changes, technological developments and current market needs.
Also in attendance were Deputy Commissioner of Insurance Ms Khadija Issa Said, Assistant Commissioner for Financial Sector Development Ms Dionisia Mjema and TIRA Quality Assurance Officer Ms Irene Horera.