Tanzania: Amended Insurance Law in Tanzania

Jul 28, 2017 | The East African; All Africa

Tanzania has amended its insurance law to give two-thirds ownership of brokerage firms to locals.

The Miscellaneous Amendments Bill (No. 2 of 2017), which has been passed by parliament, amends the Insurance Act (No. 10 of 2009). The changes require insurance brokers to be at least two-thirds (above 66 per cent) owned and controlled by Tanzanian citizens -- a 100 per cent increase from the previous local-participation requirement of one-third or 33 per cent). Further, it requires customers to pay insurers all premiums directly, even where they are using brokers. Brokers will only be entitled to receive their commissions directly from the insurers (instead of taking them out of premiums from customers), with heavy penalties for contravention. Minimum rates The amendments give the Commissioner of Insurance powers to set minimum rates of premiums payable for different classes of insurance, by publishing the orders in the Government Gazette. Insurance cover for a Tanzanian resident individual or company may only be placed with a Tanzanian registered insurer. Read more on All Africa. Source: All Africa