The insurance sector is a vital pillar of Tanzania’s financial system, providing individuals, businesses, and institutions with the tools to manage risk, ensure financial protection, and build economic resilience.
A well-functioning insurance industry contributes to economic growth, promotes investment, facilitates credit access, and protects livelihoods against unforeseen losses.
To ensure that the sector operates fairly, efficiently, and sustainably, the government established the Tanzania Insurance Regulatory Authority (TIRA) under the Insurance Act, Cap 394. TIRA is charged with the responsibility to regulate, supervise, and develop the insurance industry in both Mainland Tanzania and Zanzibar.
Over the past several years, the insurance industry in Tanzania has undergone significant transformation. Under TIRA’s oversight and guided by strategic policy direction, the sector has expanded in terms of access, innovation, regulatory integrity, and market resilience. This brief analysis highlights key milestones and performance indicators reflecting the growth and reform journey of Tanzania’s insurance sector from 2021 to 2024.
Key milestones
In the past four years, the number of registered insurance service providers increased from 993 in 2021 to 2,208 in 2024, marking a 122.4 per cent growth. This significant increase was partly driven by the introduction of new categories of registrants that were not previously licensed by the Authority. These include 130 registered Health Service Providers (HSPs), 128 licensed Automotive Repairers and Mechanics (ARMs), and 17 licensed Digital Insurance Providers, all of whom are now formally integrated into the regulated insurance ecosystem.
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All registered entities must meet legal and professional standards, with sufficient capital, technical expertise, and compliance systems. TIRA does not grant licenses unless fully satisfied with compliance, thereby ensuring a safe market for consumers. The Authority welcomes investors with capacity and integrity to explore this growing sector.
Also, insurance coverage grew from 14.2 million beneficiaries in 2021 to 25.9 million in 2024, an increase of over 11.7 million lives. This is equivalent to 82.4 per cent growth, driven by increased product diversification and public education campaigns.
Formal employment in the insurance industry nearly doubled from 3,527 in 2021 to 6,916 in 2024. The sector has become a significant employer, offering stable jobs in underwriting, distribution, ICT, compliance, and actuarial services.
Total industry assets increased from Sh1.277 trillion in 2021 to Sh2.340 trillion in 2024, an 83.3 per cent growth reflecting improved capitalisation and risk retention among insurers.
Total shareholders’ capital in the sector rose from Sh416.0 billion to Sh847.3 billion, a 103.6 per cent increase. This capital growth enhances the solvency and stability of insurers.
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Gross written premiums rose from Sh911.5 billion in 2021 to Sh1.418 trillion in 2024, representing a growth of 55.6 per cent.
The insurance sector’s contribution to GDP rose from 1.68 per cent in 2021 to 2.01 per cent in 2023. Projections indicate the industry may reach three per cent of GDP by 2030 with current growth trends and mandatory schemes in place.
Total claims paid increased from Sh397.6 billion in 2021 to Sh592.1 billion in 2024. The average turnaround time for undisputed claims improved from 73 days to 45 days, showcasing enhanced operational efficiency.
Tax revenue from the insurance industry increased by 32.97 per cent, from Sh137.7 billion in 2022 to Sh183.1 billion in 2023.
Reforms
TIRA, under the oversight of the National Insurance Board, has also introduced 16 regulatory frameworks covering capital adequacy, market conduct, bancassurance, takaful, claims management, and digital insurance. These have strengthened governance, improved investor confidence, and aligned the market with international best practices.
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These reforms have been accompanied by public education, which TIRA considers a core strategic priority. In 2023, the Authority launched the National Insurance Education Strategy (NIES) to serve as a national roadmap for awareness creation and insurance literacy. It guides outreach programs across schools, religious institutions, trade fairs, local governments, and mass media.
To complement formal outreach, TIRA introduced insurance ambassadors, volunteers and community leaders who educate others on insurance benefits and principles. While every citizen with knowledge can act as an insurance ambassador, these individuals have committed themselves to helping demystify insurance at the grassroots level.
The outcome is clear: between 2021 and 2024, the number of insured individuals rose by over 11 million, and insurance literacy across urban and rural populations has markedly improved.
Innovation
Between 2021 and 2024, over 60 new insurance products were approved, averaging 15 products per year. These include climate risk covers, crop and livestock insurance, cyber liability, takaful (Sharia-compliant insurance), and microinsurance products tailored for underserved communities.
The process of product approval is rigorously technical and consumer-focused. Each product is subjected to a multi-layered review conducted by qualified professionals within TIRA, including actuarial analysts, insurance specialists, legal officers, and compliance experts.
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These experts conduct risk-benefit assessments, market suitability analysis, and legal compliance reviews to ensure that products meet regulatory standards and provide genuine value to policyholders.
This structured vetting process ensures that every approved product aligns with consumer protection goals, responds to market needs, and does not expose users to unjustified risks. Through this approach, TIRA has been able to maintain a high standard of product quality, stimulate innovation, and strengthen public confidence in the insurance system.
The insurance sector’s digital transformation has been accelerated through tools like TIRA-MIS (for insurance data), ORS (online registration), and TSS (transaction supervision). These systems have reduced bureaucracy and improved reporting and transparency. Integration with NIDA, TRA, BOT, and LATRA enhances regulatory efficiency and reduces fraud risks.
Expansion
TIRA expanded its zonal presence from five to 10 offices between 2022 and 2024, decentralising oversight and bringing services closer to the public. Staff training programs, automation, and the provision of modern ICT tools have strengthened capacity across all units.
TIRA has maintained clean audit opinions and contributed a total of Sh9.6 billion in dividends to the government between 2022 and 2024. Internally generated income rose by 36.5 per cent, supporting strategic investments in ICT infrastructure, staff development, and regulatory innovation.
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Looking ahead, the insurance industry is poised for even greater transformation. Key priorities include finalising the National Insurance Policy, implementing the Universal Health Insurance Act, and enforcing compulsory insurance for public infrastructure, businesses, and imported goods.
TIRA reaffirms its commitment to fostering an inclusive, well-regulated, and innovation-driven insurance sector for the benefit of all Tanzanians.
Hadija Maulid serves as the Manager of the Public Relations and Communications Department at the Tanzania Insurance Regulatory Authority (TIRA). She can be reached at hadija.maulid@tira.go.tz. The opinions expressed here are the writer’s own and do not necessarily reflect those of The Chanzo. If you are interested in publishing in this space, please contact our editors at editor@thechanzo.com.
