FSDT Launches ‘THE BIMA CHALLENGE FUND’ campaign in Tanzania
28th June 2016 Dar es Salaam, Tanzania – The Financial Sector deepening Trust (FSDT) has launched today a micro-insurance funding campaign known as ‘the Bima Challenge’ in order to accelerate the development of the microinsurance sector in Tanzania, with a primary focus on the low-income market segment.
The 12-month campaign launched today at the Hyatt Regency Hotel is the first of its kind in Tanzania. It is designed to be a co-financing 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.
The FSDT Executive Director, Mr. Sosthenes Kewe, said, “There is a huge gap in insurance penetration of the low-income market segment in Tanzania and our hope is that the Bima Challenge will address this with some innovative products that will touch the lives of MSMEs, individuals and families who fall within this segment.”
Giving further explanation on how interested parties can participate in the challenge, FSDT’s Head of Insurance Mrs. J. Kemibaro Omuteku said that the key players interested in participating should be partnered with insurance companies for underwriting purposes.
“Once an individual or entity has an innovative idea that they believe will make a difference in the insurance sector for the low-income segment they can fill in their application through our website” she said. “We have a rigourous process which is clearly outlined in the website and also shows what one needs to qualify. As part of the process, there is a panel of experts to review each application in detail to ensure that everyone is given an equal chance of participation” she added.
On his part, The Chairperson of the Microinsurance Technical Working Group, Mr. Julius Magabe said that the Bima Challenge is an opportunity to revolutionize the insurance sector as it will open a lot of doors for both the consumers and companies to benefit. He pointed out that the market players will grow, strengthen their product offerings, offer more efficiency to their clients, and build more capacity in terms of distribution channels and product delivery. “For the first time as insurers we have been given the opportunity to venture into unfamiliar territory with reduced costs in investment, research and risk management” he added
“I take this opportunity to congratulate FSDT for introducing this innovative campaign with the aim to improve Tanzania’s Insurance and the microinsurance sector” he concluded.
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.
For more information on FSDT, please visit fsdt.or.tz
Established in 2013, the Microinsurance Technical Working Group (TWG) was formed as a governing body to steer the development of the action plan for the development of the microinsurance industry. The TWG strategy focuses on demand stimulation, supply strengthening and facilitating an enabling environment in order to drive insurance penetration in the country.
For more information on the TWG