Insurance industry pledges more contribution to GDP

The insurance industry in the country eyes increasing its annual revenue by over 50 per cent from next year in a bid to contribute more to the Gross Domestic Product (GDP).

Speaking at the 18th Annual Insurance Day in Dar es Salaam yesterday, the Commissioner of Insurance, Mr Israel Kamuzora, said they plan to increase the annual income from the current 650 billion/- to 1 trillion/- in the coming year.

“The industry has currently invested a capital of 450bn/- in the existing year’s economy thus acted as a catalyst for the country’s economic growth,” said Mr Kamuzora. He declared that much has to be done in imparting more knowledge on the importance of insurance covers to the public, particularly the informal sector.

“Today, we are going to go about and see the best ways possible and consider how we are going to create more awareness to facilitate enrollment on various insurance covers,” he said.

The Kagera earthquake has truly demonstrated the need for people to enroll themselves into various insurance covers. By now, the insurance companies would have compensated the beneficiaries.

Meanwhile, the Deputy Secretary in the Ministry of State, President’s Office, Public Service Management and Good Governance, Ms Susan Mlawi, pointed out that society needs to gain a basic understanding of insurance and knowledge as to how people can manage risks through insurance.

“Insurance education thus needs to focus on increasing the awareness levels and the reach of insurance to every Tanzanian but particularly to the less privileged in our society,” said Ms Mlawi.

The majority of insurance products in our country are presently focused on traditional markets, serving the needs of large corporate and high-income individuals, with limited product development at the lower income end of the population.

Ms Mlawi challenged the insurance industry to develop cross-competency curriculum including technical, professional and soft skills training. “This will enable practitioners and risk managers to access leading edge industry knowledge and techniques needed for creation of efficiency in the delivery of insurance services in Tanzania,” she noted.

On her part, the Head of Operation at the African Management Service Company (AMSCO), Ms Judith Lorika, was of the view that to build growth of the sector, more capacity building and local skills development should commence.

“More programmes that go in line with the changing world should be introduced for the existing ones were outdated,” said Ms Lorika.