Banks now account for 19.9% of the total premium income of the insurance market, barely two years since lenders took up bancassurance.
Around 20 commercial banks had the licence to sell insurance products as of the end of December last year, reported The Citizen citing the Tanzania Insurance Regulatory Authority (TIRA).
According to TIRA’s quarterly performance report for the three months from 1 April to 30 June last year, total insurance premiums written in respect of both long-term and general insurance businesses was TZS202.7bn ($88m). Of this total, TZS40.36bn (19.9%) was generated through bancassurance.
Of the bancassurance total, general insurance business accounted for TZS15.97bn whereas long-term business contributed TZS24.39bn.
The report says that TIRA will continue to enhance compliance with bancassurance rules as well as to promote bancassurance so that it would be a more vibrant and efficient distribution channel.
Speaking to The Citizen, TIRA acting director for planning, research and market development, Mr Zakaria Muyengi, said that out of more than 40 banks, only 20 banks were licensed for bancassurance.
“That means more effort needs to be done in ensuring others grab the emerging opportunity,” he said.
He called on banks that are already licensed to expand their services to rural areas so that more people would easily access insurance services.