ZANZIBAR President Dr Hussein Ali Mwinyi has called for the swift completion of the national insurance policy to provide strategic direction on insurance utilisation across all sectors.

At the launch of the Zanzibar insurance market report here yesterday, the president demanded expedited establishment of the Insurance and Social Protection Board to oversee professionals in the sector.

“Increased efforts should be directed toward technological advancement, innovative insurance products and public education on insurance benefits,” he explained, underlining the need for research to identify risk factors requiring government asset protection through insurance.

The Tanzania Insurance Regulatory Authority (TIRA) needs to initiate a review of existing laws and regulations to ensure they are aligned with current economic conditions, he stated, affirming that the Zanzibar authorities, in collaboration with TIRA, seek to foster a conducive insurance market to boost national revenue.

The union and Zanzibar governments are committed to driving economic development through ongoing transformative reforms across all sectors, he said, underlining the dedication to attracting investors by creating an enabling business environment and streamlining investment procedures.

The insurance sector needs to keep pace with the government’s development agenda through innovation and technology while ensuring professionalism and collaboration among service providers and stakeholders, he emphasised.

“To strengthen the insurance sector, we must address its challenges by improving key areas,” he said, insisting that everyone should fully utilize insurance services. “If there are legal barriers, I direct the relevant authorities to work diligently to address them,” he further instructed, elaborating that the government is ready to provide support to maximize the benefits of insurance, as seen in other nations.

Dr Saada Mkuya Salum, the Finance and Planning minister for Zanzibar, highlighted the sector’s responsibility to build a strong national economy and enhance citizens' financial security, while

Dr Suleuman Rashid Mohammed, the Zanzibar National Insurance Board vice chairman, pledged effort to develop a secure and sustainable insurance market, while Dr Baghayo Saqware, the commissioner for Insurance and TIRA CEO, reported a 7.4 percent increase in insurance underwriting.

There was a 33 percent rise in insurance service providers, from 1,165 in 2022 to 1,549 in 2023, which reflected considerable job creation growth, while insurance assets increased by 26 percent reaching 2trn/- in 2023. Insurance claims grew by 25.5 percent from 389bn/- to 488.2bn/- during the period, he stated.

The number of general insurance policyholders stands at 4.08m, while life insurance policyholders are pegged at 7.9m/-, in an environment where the insurance sector’s contribution to GDP has risen to 2.31 percent.

The commissioner advocated for the adoption of an insurance policy framework and mandatory insurance to drive economic growth and provide coverage for farmers, fishers and miners.

Chief Secretary Zena Ahmed Said emphasized the need to promote Takaful insurance as it is aligned with religious financial principles but remains accessible to users regardless of denominational affiliation.

“Some people had religious concerns about conventional insurance, but Takaful eliminates those barriers,” she said, while Khadija Said, the deputy commissioner of Insurance, was elated that the conference had advanced prospects for the insurance sector nationwide.