Financial Sector Deepening Trust

Tanzania's insurance market is found to be not growing in line with the global trend in insurance acceptance. This is primarily due to the lack of adequate actuarial studies to identify the market trends and lack of new customized products and techniques for Tanzanian market. The conventional insurance providers are also not keen to introduce such products and techniques to attract new customers.

As of the President of Tanzania Insurance Brokers Association, the last actuarial studies conducted in the country was in 2013, which infers that the available market data for the insurance stakeholders are fully outdated by now.

Insurance industry in Tanzania

However, things are changing lately as many of the global insurance providers are showing interest in the Tanzanian market and there is also attempts to penetrate into rural Tanzania also which is a largely under-served market for decades.

The TIBA President says that the insurance providers need to carry out updated actuarial studies in order to know the ways to improve insurance business by designing new customized products for this market. Audit firms like KPMG and other such organizations have taken these initiatives and there are expert studies carried out lately.

Getting cheap insurance

As this is the general scenario, the people of Tanzania have a fair scope of getting cheap insurance now to enjoy the best benefits. However, as there are not much customized products for Tanzanian market, one need to do an in-depth analysis to identify what type of an insurance will be best matching to your purpose. Here we will consider a few factors to note in securing a cheap insurance policy.

¨ The first thing you should consider before going for a cheap insurance is for what cause you are availing the insurance and what all things are covered under insurance. Say for example, if you are availing the insurance for a car, check whether the car insurance too is covered under the cheap insurance.

¨ Consider the rules of payment. Some insurance may be visibly cheaper to you at the first point, but based on the payment terms, it may prove out to be costly for you later. Check whether there is a full down payment of the premium or installation payments. Sometimes, it may be good to go for a new insurance than renewing an existing one.

¨ Next check your deductibles, which is the amount you agree to pay towards a loss before the insurance fulfills your claim. If there is a higher deductible, then your premium may be lower. Based on the area you live and the risks involved, the deductibles may vary.

¨ Another good tip to consider while looking for cheap insurance is to take multiple policies from the same company. Say for example, you can purchase home insurance from the same provider offering an auto insurance. The rates may be reduced to about 5 to 15% if you purchase multiple policies from the same company.

The best option while considering insurance is to go online and shop around to identify the best possible options based you purpose.