One of the steps that FSDT had taken to increase access to insurance is the recently announced Bima challenge, a micro-insurance funding campaign in order to accelerate the development of the micro-insurance sector in Tanzania, with a primary focus on the low-income market segment.
MWANZA, September 27, 2016/– The Financial Sector Deepening Trust(FSDT) has today launched the regional business case sessions in Mwanza with hundreds of insurance stakeholders in the region and beyond in attendance. The Business Case Sessions, which will be carried out countrywide, aim at bridging the gap between the insurance industry and the rural informal segment of the country’s economy.
Today’s launch has been opened by Executive Director of FSDT, Mr. Sosthenes Kewe and the Director of Insurance Development at Tanzania Insurance Regulatory Authority(TIRA) Ms Aledaide Muganyizi.
Welcoming participants from various backgrounds of the country’s economy, Kewe said it was important for each of the players in the insurance sector to show case available appropriate insurance products to be utilized by low income households and individuals.
“Insurance is part of financial services and its broader reach across the country will translate into an increase in productivity in the economy,”he said Kewe said FSDT had learnt from their surveys countrywide that while savings rates were growing, insurance protection rate was still very low.
Kewe said one of the steps that FSDT had taken to increase access to insurance is the recently announced Bima challenge, a micro-insurance funding campaign in order to accelerate the development of the microinsurance sector in Tanzania, with a primary focus on the low-income market segment.
Urging participants to make use of the opportunity, Kewe said the Bima Challenge campaign was designed to be a co-ˇfinancing facility that would contribute to the acceleration of the development of an inclusive insurance market in Tanzania.
Through the provision of financial and technical assistance, the Bima Challenge supports product design, experimentation and roll out of innovative and customer centric insurance products that will make insurance services affordable, accessible and responsive to the risk management needs of Tanzanians;; especially those in the low-income market segments.
The Bima Challenge is set to inspire innovation and game changing ideas that will drive and overhaul the way the Insurance business is done in the country.
Speaking at the event, the Director of Insurance Development at Tanzania Insurance Regulatory Authority(TIRA) Ms Aledaide Muganyizi said the partnership between FSDT and TIRA aimed at ensuring insurance reaches majority of people in Tanzania.
“This is part of the government strategy of 2014-2019 which targets that 50 percent of Tanzanians atleast have access to one of the existing insurance service by 2019. The biggest part of Tanzanians come from villages and largely depend on agriculture. Agriculture , for instance can be hit by disasters and disasters don’t warn anyone.Insurance is the answer to this.” she said.
She gave the example of the recent September 10 earthquake in Kagera that killed 16 people in, left 300 injured, 900 homes destroyed and 1254 buildings ravaged as one of the example of disasters that can be covered by insurance.
The Regional Business Case sessions have been conceptualized to extend the sensitization of the micro insurance business case beyond Dar es Salaam, but more importantly, to stimulate micro insurance demand as well as distribution partnerships in the regions.”
The sessions are intended to create direct linkages with the rural informal sectors of the economy that are financially excluded, taking advantage of existing informal structures. These include farmer groups, women groups and associations, cooperatives, youth enterprise development organizations, religious groups and Non-governmental organizations.
Today’s sessions explore subjects such as Health and Hospitalization insurance (families), Agriculture insurance (weather and livestock), Life insurance (credit and non-credit) and Property and Travel insurance (micro-business).The regional business case sessions are part of market facilitation initiatives spearheaded by the Micro Insurance Technical Working Group (TWG) and supported by the Financial Sector Deepening Trust (FSDT) and Tanzania Insurance Regulatory Authority (TIRA).
Established in 2004, the Financial Sector Deepening Trust’s (FSDT) work aims to develop market systems that benefit underserved individuals, households and enterprises, offering them capacities and opportunities to improve their lives. This involves addressing challenges, and supporting innovations and market interventions in the financial sector through partnerships with financial sector stakeholders.