DODOMA: TANZANIA’S insurance industry is gaining fresh momentum, opening new doors to employment and expanding its economic footprint, with 8,964 jobs created in 2025 as gross written premiums surged by 68.4 per cent to 2.55tri/-, marking a year of impressive growth for the sector.
The figures tell a story of an insurance industry gathering pace, creating jobs, attracting business and extending its reach across Tanzania. With employment rising to 15,398, the sector is steadily strengthening its place in the economy.
Yet, beyond the billions of shillings in premiums and the growing number of service providers lies a pressing question: how can this expansion translate into wider insurance coverage and reliable protection for ordinary Tanzanians, families and businesses?
The challenge took centre stage when Deputy Minister for Finance, Engineer Ali Munde, officiated at the presentation of the Annual Insurance Market Performance Report at the Tanzania Insurance Regulatory Authority (TIRA) headquarters in Dodoma over the weekend.
Engineer Munde commended the financial and insurance sector for recording growth of 15.7 per cent in 2025, up from 12.7 per cent in 2024, reflecting its growing contribution to the country’s economic development.
The industry’s expanding reach is also evident in the sharp rise in insurance service providers, whose numbers increased from 1,741 in 2024 to 10,000 in 2025, creating a wider network through which insurance products and services can reach more customers.
For Commissioner of Insurance and TIRA Chief Executive Officer, Dr Baghayo Saqware, the sector’s significance extends beyond impressive financial figures.
He said insurance was becoming an increasingly important pillar of Tanzania’s financial system, helping households, businesses and institutions manage risks that could otherwise wipe out savings, disrupt operations and threaten their financial security.
He said sustained growth must go hand in hand with an inclusive, efficient, fair and stable insurance market, where more Tanzanians can access appropriate cover and policyholders receive the protection promised under their policies.
TIRA’s 25th Annual Insurance Market Performance Report shows total industry assets rose 64.7 per cent to 4.06tri/- from 2.47tri/- in 2024. Industry net worth more than doubled to 1.89tri/- from 832.20bn/-, strengthening insurers’ financial position.
Dr Saqware said the expansion of insurers’ financial capacity is significant because a stronger market can mobilise more capital and assume risks across the economy.
Maintaining that strength, however, requires effective supervision and prudent management to ensure companies remain able to meet their obligations to policyholders.
Health insurance was a major driver of premium growth. Gross written premiums in the segment climbed to 986.60bn/- from 187.48bn/- in 2024, an increase of approximately 426 per cent.
Health insurance accounted for 38.6 per cent of total premiums, reflecting its growing importance as Tanzania advances Universal Health Insurance. General insurance remained the largest category, generating 1.15tri/-, equivalent to 44.9 per cent of the market, compared with 957.18bn/- a year earlier. Life-insurance premiums rose to 358.80bn/- from 308.99bn/-, representing 14.1 per cent of the market.
Takaful contributions increased 39.8 per cent to 6.50bn/-, up from 4.62bn/-, while foreign inward reinsurance premiums declined 3.7 per cent to 55.90bn/-. According to the report, the insurance industry is also becoming a more significant investor. The investment assets rose by 59.3 per cent to 2.24tri/-.
Bank deposits accounted for 44 per cent of the portfolio, government securities 30.6 per cent, equities 13.5 per cent and real estate 6.8 per cent. Dr Saqware said the longterm value of a well-regulated insurance industry extends beyond premium collection.
“By investing funds prudently, insurers can help mobilise domestic savings and support economic activity while preserving the resources needed to settle claims,” he said. Tanzania’s wider economy grew by 5.9 per cent in 2025, with gross domestic product reaching 186.10tri/-.
Finance and insurance expanded by 15.7 per cent, while the sector contributed 8.87tri/- , equivalent to 4.8 per cent of GDP.
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Yet insurance penetration edged up only slightly, from 2.08 per cent to 2.11 per cent of GDP. For the regulator, this points to a central challenge: a rapidly expanding industry has yet to translate its growth into widespread insurance adoption.
The number of individuals, policyholders and beneficiaries accessing insurance services rose 3.4 percent to 26.8 million from 25.9 million in 2024.
TIRA reported this as equivalent to 39.3 percent of Tanzania’s estimated population of 68.1 million. However, the figure should not automatically be interpreted as the proportion of unique individuals fully insured. Claims settlement will also shape public confidence.
Total reported claims rose 120.8 per cent to 1.61tri/- in 2025, from 727.7bn/- the previous year. Insurers paid 1.29tri/-, equivalent to 80.25 per cent of reported claims, while 317.37bn/- remained under processing, including verification of claims and supporting documents.
Dr Saqware’s regulatory challenge is therefore twofold: maintain financial stability as the market grows and ensure consumers can rely on the protection they purchase.
Faster, fairer claims handling, effective dispute resolution and action against insurance fraud are essential to building trust in insurance as a practical financial safeguard.
TIRA is pursuing stronger prudential supervision and consumer protection alongside digital regulatory systems, an insurance regulatory sandbox, amendments to the Insurance Act, finalisation of the National Insurance Policy, implementation of mandatory insurance requirements and an agricultural insurance scheme.
Dr Saqware has also identified the importance of broadening access through products and distribution channels that can serve people overlooked by conventional insurance.
Microinsurance, agricultural cover and digital services could help households, farmers and small businesses manage financial shocks while opening new opportunities for insurers. Tanzania’s 2025 results show an industry expanding in premiums, employment and financial assets.
The next test is whether that growth can deliver wider coverage, sustainable investment and reliable claims payments.
As Dr Saqware’s regulatory agenda suggests, the sector’s lasting contribution will be measured not only by the size of its balance sheets, but by how effectively it protects livelihoods and supports businesses through uncertainty.
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