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The Tanzania Insurance Regulatory Authority (Tira) plans to launch a consortium of agricultural insurance to boost the delivery of insurance products to farmers. The consortium will cooperate with the insurance agents in selling the products.
The Tanzania Insurance Regulatory Authority (Tira) plans to launch a consortium of agricultural insurance to boost the delivery of insurance products to farmers. The consortium will cooperate with the insurance agents in selling the products.
Tira will set guidelines and conditions on how the companies will work with the agents. Tanzania’s agricultural insurance sales were Sh1.3 billion in 2021 which was equal to 0.17 percent of the country’s total insurance sales in the country. The situation was blamed on the low ability of farmers to afford insurance premiums. Limited technology and poor infrastructure for the effective operation of agricultural insurance, as well as the non-availability of sufficient agricultural information to register insurance, also contributed to the trend.
The consortium will be the second in the country, after the oil and gas that involves more than 20 insurance companies. Currently, there are four companies that offer agriculture insurance.
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Commissioner for Insurance, Dr Baghayo Saqware said the plans were part of the implementation of the government’s decision to ensure at least 50 percent of Tanzania’s adult population has access to one insurance product by 2030. The impact of the move was vividly seen as people’s confidence in insurance continues to increase. He also said that universal health insurance coverage was also on the way, adding that the scheme will require agents to distribute products.
