Tanzania is a country in Africa. This country has citizens of different ethnicity and religion. In recent years, Tanzania has shown growth and the country is slowly flourishing. Same thing applies to the insurance sector too; insurance sector has seen growth in the country.
Insurance industry in Tanzania Tanzania has been trying to control insurance industry in the county to help the country’s economy grow. The law passed in 1996 by Tanzania government helped the private companies enter the market of insurance industry. The foreign insurance companies entered the insurance sector and have become part of Tanzania’s economic growth. These companies partnered with the local investors.
Role of insurance company in developing country like Tanzania
Tanzania knows that it is important that each person is insured. There might be loss of life or there might be health problem or the person might suffer some injury. In these circumstances insurance becomes important as this insurance covers this loss of life or the cost of health recovery.
Prior to insurance coverage in Tanzania, the people in country would depend on community for money issues during troubled times like death. But with emergence of insurance these costs are covered.
The companies in Tanzania have started to understand the importance of cover for their business. They know that there might be loss or damage while doing business and having insurance coverage for their business will be really helpful.
Insurance gives person peace of mind. He can be sure that if there is any disaster in his business, the insurance will cover it.
Insurance in Tanzania has also helped farmer industry. The crop insurance and the micro insurance have been helping farmers come out of any trouble. This way the farmer can confidently sow the seeds and get the yield that he prefers.
Still there is a need to grow the awareness of insurance in the public, as some of the public members do not buy the insurance that might be helpful to them. People buy insurance that does not cover the third-party insurance for accident, now agents are making these people aware about the benefits of getting these insurances to keep them safe.
The Tanzania insurance regulatory authority or TIRA is trying to make people aware of the benefits of insurance, so that people buy the right insurance and get secured. TIRA also ensures that the insurance industry performs properly and every citizen gets the benefits.
Government also plays an important role in growth of insurance industry. The Government must ensure that there is no corruption, so that the insurance companies can do work properly.
Government should provide schemes so that these people get tax benefits when they take insurance. This has been a way followed by Government in most developing or developed countries.
Tanzania has shown a good growth in insurance industry and with help of government the insurance industry will flourish even more to help public.
Innovative approaches and schemes like farming loans with long term deferred payback options, crop and other related insurances, weather insurances, campaigns and push for financial literacy and mobile banking have slowly but surely managed to make an impact.
Rural finance is important Considering all above inputs, it goes without saying that rural finance and insurance hold a great amount of significance in African countries. It could actually be the most important factor that brings about the change in the rural lives. Financing and insurance products become so important for their survival and prosperity. It becomes the backbone on which the agriculture sector can be propped up. Considering that it is the farmer who feeds the nation, it is important for governments to promote this as well. Rural finance and insurance can change the complete financial landscape of the rural population and in turn that of the country itself.