Life insurance - Tanzania | Statista Market Forecast

The Life insurance market market in Tanzania is expected to reach a market size (gross written premium) of US$1.33bn in 2024.
On average, individuals in Tanzania are projected to spend US$19.10 per capita in the Life insurance market market in the same year.
With an annual growth rate (CAGR 2024-2029) of 2.58%, the gross written premium is anticipated to increase, resulting in a market volume of US$1.51bn by 2029.
In comparison to other countries, the United States is forecasted to generate the highest gross written premium, amounting to US$1.3tn in 2024.
Tanzania's life insurance market is experiencing significant growth due to increasing awareness of the importance of financial protection and a growing middle class.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

Over the past decade, the Life insurance market in Tanzania has experienced significant growth and transformation, reflecting the changing dynamics of the insurance industry in the country.

Customer preferences: Customers in Tanzania are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. This shift in preferences can be attributed to a growing awareness of the importance of long-term financial planning and the desire for comprehensive coverage.

Trends in the market: One notable trend in the Tanzanian life insurance market is the rise of innovative product offerings tailored to the needs of different customer segments. Insurers are introducing flexible policies that can be customized to individual requirements, attracting a wider customer base. Additionally, the market has seen an increase in digital distribution channels, making it more convenient for customers to access and purchase life insurance products.

Local special circumstances: The regulatory environment in Tanzania plays a crucial role in shaping the life insurance market. Stricter regulatory requirements have been implemented to enhance consumer protection and ensure the stability of the insurance sector. This has led to increased transparency and trust among customers, contributing to the overall growth of the market.

Underlying macroeconomic factors: The growth of the Tanzanian economy, coupled with rising disposable incomes, has had a positive impact on the life insurance market. As more individuals and families seek to safeguard their financial future, the demand for life insurance products continues to increase. Moreover, the stability of the political landscape and ongoing infrastructure developments further support the expansion of the insurance industry in Tanzania.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.