By Business Insider Reporter
Tanzania’s insurance industry paid TSh1.29 trillion in claims in 2025, a 136.4 percent increase from the previous year, as gross written premiums rose to TSh2.55 trillion, signalling an expanding role for insurance in protecting households, businesses and public institutions against financial losses.
The Tanzania Insurance Regulatory Authority’s (TIRA) Annual Insurance Market Performance Report 2025 shows that the industry’s claims settlement ratio improved to 80.2 percent from 74.9 percent in 2024, indicating progress in meeting policyholders’ claims.
The figures point to growing financial protection, although the industry’s reach remains limited. Only 26.8 million people, equivalent to 39.3 percent of Tanzania’s estimated population of 68.1 million, were covered by insurance during the year.
The report was launched in Dodoma on October 16, 2026, by Deputy Minister for Finance Mshamu Ali Munde, representing Prime Minister Mwigulu Nchemba. Mr Munde commended TIRA for its efforts to regulate and develop the insurance sector, underscoring the importance of effective oversight in strengthening the industry.
Claims payments and consumer protection
The increase in claims payments is significant because insurance delivers its practical value when policyholders receive compensation for covered losses or benefits when they need them.
For households, this can mean support for medical treatment, death benefits or assistance following insured accidents. For businesses, timely payments can help restore operations after property damage and other covered risks, reducing reliance on savings or borrowing.
The Commissioner of Insurance (COI), Dr Baghayo Saqware (pictured below), said the sector had continued to grow, strengthening its contribution to the national economy.
TIRA’s report shows that health insurance accounted for TSh772.8 billion of claims paid, with a settlement ratio of 91.7 percent. Life insurers settled 86.3 percent of reported claims, while general insurance claims payments rose 21.5 percent to TSh415.9 billion.
However, the general insurance settlement ratio declined to 64.2 percent from 66.6 percent in 2024, as reported claims grew faster than payments. This highlights differences in performance across insurance segments and the need to ensure premium growth translates into reliable customer protection.
Claims reported increased 120.8 percent to TSh1.61 trillion, exceeding the TSh1.29 trillion paid. The difference does not necessarily represent rejected claims, as some may still be under assessment or awaiting settlement. Transparent decisions, timely payments and effective complaint resolution remain essential to public confidence.
Health insurance reshapes the market
Gross written premiums increased 68.4 percent from TSh1.52 trillion in 2024 to TSh2.55 trillion in 2025. Much of the increase reflected the inclusion of National Health Insurance Fund (NHIF) contributions following implementation of the Universal Health Insurance Act, 2023.
Health insurance premiums rose 426.2 percent to TSh986.6 billion, accounting for 38.6 percent of the market, compared with 12.4 percent in 2024. NHIF recorded contributions of TSh773.4 billion, making it the country’s largest health insurer by financial indicators, according to the report.
The expansion strengthens the financial infrastructure supporting healthcare access. However, the figures reflect the inclusion of NHIF contributions and should not be interpreted as evidence that underlying insurance demand grew at the same pace.
For financial inclusion, the challenge is to extend affordable insurance beyond established formal-sector and urban customers to farmers, fishers, small traders, women, young people and rural households. Public education, affordability and confidence in claims settlement will influence whether more people adopt and retain cover.
A wider role in economic development
Insurance penetration increased modestly to 2.11 percent of gross domestic product (GDP), from 2.08 percent in 2024, indicating considerable scope to deepen the industry’s contribution to the economy.
Dr Saqware reported that insurance-sector net capital increased from TSh697.4 billion in 2024 to TSh1.89 trillion in 2025, while investments rose from TSh1.41 trillion to TSh2.24 trillion. Total industry assets also increased from TSh2.14 trillion to TSh4.06 trillion.
Formal employment in the insurance sub-sector rose from 3,000 to 6,434 over five years, an increase of about 114.5 percent, according to the COI.
These developments strengthen the sector’s potential to mobilise domestic capital, support employment and help businesses manage risks. Agricultural insurance can protect farmers against specified insured risks, while property, engineering and liability cover can support enterprise expansion and investment.
However, domestic capacity to insure large infrastructure, energy, mining, aviation and marine risks remains constrained. Stronger underwriting capacity and local reinsurance arrangements would help meet Tanzania’s growing investment needs.
These priorities align with Dira 2050, which seeks to transform Tanzania into a high-income economy through productive investment, private-sector participation and stronger institutions. A more inclusive insurance market can contribute by protecting livelihoods, supporting enterprise growth and helping investors manage risk.
Expanding access and confidence
The report’s findings highlight the opportunity to widen insurance coverage as Tanzania’s economy and formal financial services develop.
TIRA’s priorities include stronger risk-based supervision, digital transformation, microinsurance and implementation of mandatory insurance requirements. The authority also placed five insurers under statutory management during 2025 to restore their financial soundness and protect policyholders. Dr Saqware said TIRA also intends to complete the National Insurance Policy and improve the laws and regulations governing the sector, aligning its development with Dira 2050 and the Financial Sector Development Master Plan 2030.
