New campaign to promote microinsurance launched in Tanzania

Jul 01, 2016

It will encourage insurance firms to come up with new products targeting the low-income market segment.

An awareness campaign designed to boost the development of microinsurance was launched this week in Tanzania by the Financial Sector Deepening Trust (FSDT) - an organisation which promotes access to finance for the poor.

The 12-month 'Bima Challenge' campaign will help insurance firms to come up with new products focusing on the low-income market segment.

"The campaign supports product design, experimentation and rollout of innovative and customer-centric insurance products that will make insurance services affordable, accessible and responsive to the risk management needs of those in the low-income market segment," said FSDT executive director Sosthenes Kewe, quoted by newspaper The Citizen.

He added that the insurance penetration rate currently stands at 13 per cent in Tanzania, but the FSDT aims to increase this rate to 30 per cent by 2017.

In March, the East and Central Africa Social Security Association (ECASSA) said that it is working to dispel the common view that insurance only covers employees in formal employment.

"Social security institutions should cover everybody irrespective of what they do. People like journalists, lawyers, farmers, hawkers... everybody," said Patrick Ngwila, the manager of research and training at the regional association.

He added that ECASSA is currently training key players in the social security sector in Tanzania, Rwanda, Kenya, and Zambia on how to enhance service delivery and customer satisfaction, by attracting more customers from the low-income and informal sector by providing relevant social security products.

"The need for member institutions to extend coverage by going into the informal sector makes it important to build relationships in order to enable members enhance loyalty to the institutions," he pointed out, quoted by the New Times.ADNFCR-2976-ID-801821199-ADNFCR