Tanzania’s insurance dealers have failed to absorb huge potential of retail market resulting in the decimal inclusion of Tanzanians in the insurance sector.

According to the latest report of Tanzania Insurance Regulatory Authority (TIRA) that was released at the end of July this year, 85 per cent of insurance business is dominated by corporate market, while the retail market constitutes merely 15 per cent.

The TanzaniaInvest publication quotes the chief executive officer of African Life Assurance, Mr Julius Magabe, as saying: “85 per cent of our business is corporate business; this means that institutions are either buying life insurance for their employees or financial institutions covering their loan exposures.”

Mr Magabe says since the retail market is the major driver of insurance business globally, it is important that most dealers of insurance business design products that connect individuals in the insurance sector. He also believes that selling directly to individuals has a lot of future potential.

“In terms of long term sustainability of the life insurance market, it is the retail market that drives the markets of this world. It is the premiums of individuals that sustain the insurance industry,” he says.

According to TIRA, only less than one per cent of Tanzanians are included in the insurance services; while in Kenya three per cent are integrated in that sector of the economy.

A senior lecturer at the Dar es Salaam’s campus of Mzumbe University Dr Honest Ngowi said that low level of insurance knowledge and public awareness is the major factor that causes low level of inclusion of Tanzanians in the insurance sector.

“There is a great need of insurance companies to raise awareness of Tanzanians on the importance of participating in the insurance business as users and service providers,” he says.