Since bancassurance was introduced in Tanzania last year, 13 out of over 50 commercial banks in the country have been granted licences for such operations.
The Tanzania Insurance Regulatory Authority (TIRA) and the Bank of Tanzania (BoT) allow bancassurance in the country for more Tanzanians have access to insurance products and services, reported The Citizen. Bancassurance regulations were published in March 2019.
TIRA corporate communications manager, Mr Eliezer Rweikiza, told The Citizen, “We have seen great progress, and penetration is increasing – although I can’t here say by what percentage. But, there is definitely a positive change.”
Mr Rweikiza said, “Bancassurance has helped to increase employment for young people who studied insurance. In order for the banks to take up bancassurance, they must have qualified personnel to service the business.
First Assurance CEO Rogation Selengia said that his company is currently working with three banks – and will soon add two more as bancassurance is steadily proving to be lucrative.
According to the law, a bank is allowed to work with 3-10 insurance companies at any one time.
He added that some insurance brokers are currently having a hard time from the stiff competition posed by banks that engage in bancassurance.
Sanlam Life Insurance’s bancassurance manager, Ms Krispiana Shirima, said bancassurance has helped insurance products and services to reach more parts of the country on the back of the large number of bank branches across the land.
“We are currently working with at least five banks – and by the end of this year, the number will grow,” she said.