With the introduction of bancassurance in Tanzania, 13 out 50 commercial banks in that country have been granted licences for such operations.
The Tanzania Insurance Regulatory Authority (Tira) regulations allow each bank to practice bancassurance with three to ten insurance companies.
Such distribution channel was introduced by the regulatory authority in order to make insurance products accessible to a large number of Tanzanians.
The authority also aims to improve the penetration of insurance in all regions of the country. For the record, bancassurance has helped increase employment opportunities for young graduates.
Major reforms will be undertaken in the insurance industry to increase coverage and stimulate economic growth.
Achieving the targets will involve implementing policy and non-policy reforms, to boost the image of the industry and increase public confidence.
The regulatory authority commissioner general, Baghayo Saqware said that the adoption of the national insurance policy would guide reforms
A draft prepared in 2015 is regarded as a tool to facilitate the attainment of the Tanzania Development Vision 2025 and the Zanzibar Development Vision 2020 which envisage raising the standards of living to the middle-income level.
He said the draft was awaiting the approval of the Ministry of Finance and Planning before being adopted.