Insurances

The Insurances market in Tanzania is projected to reach a market size (gross written premium) of TZS US$2.59bn in 2024.
Life insurances dominate this market with a projected market volume of TZS US$1.33bn in 2024.
The average spending per capita in the Insurances market in Tanzania is expected to amount to TZS US$37.28 in 2024.
When compared globally, it is evident that the United States holds the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 2.50%, resulting in a market volume of TZS US$2.93bn by 2029.
In terms of gross written premium, the United States is expected to generate the most, reaching US$3.8tn in 2024.
Tanzania's insurance market is experiencing a growing demand for microinsurance products to cater to the needs of the low-income population.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. 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.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

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, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Tanzania is experiencing steady growth and development, driven by various factors shaping the industry in the country.

Customer preferences: Customers in Tanzania are increasingly seeking insurance products that offer comprehensive coverage at affordable prices. There is a growing awareness among the population about the importance of insurance in mitigating risks and protecting assets. As a result, there is a rising demand for a wide range of insurance products, including health, life, and property insurance.

Trends in the market: One of the key trends in the Tanzanian insurance market is the adoption of technology to enhance efficiency and reach a larger customer base. Insurers are investing in digital platforms to streamline processes such as claims management and policy issuance. Additionally, there is a trend towards customization of insurance products to meet the specific needs of different customer segments.

Local special circumstances: The insurance market in Tanzania is also influenced by local regulations and market dynamics. The regulatory environment plays a crucial role in shaping the operations of insurance companies and ensuring consumer protection. Moreover, the competitive landscape in the country is evolving, with both domestic and international players vying for market share.

Underlying macroeconomic factors: The growth of the insurance market in Tanzania is closely linked to the overall economic performance of the country. As the economy expands and incomes rise, there is a greater capacity for individuals and businesses to purchase insurance products. Additionally, factors such as political stability, regulatory reforms, and infrastructure development also play a significant role in driving the growth 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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.