All human activities including economic and many other social undertakings are associated with risks of different types and magnitude.
These risks need to be managed for the
purpose of mitigating their effects to the affected individual,
corporate person or community through various arrangements, particularly
insurance schemes.
Mr Ramadhani Mongi, the Principal Officer with BUMACO Insurance Company says in Tanzania the awareness on benefits of insurance in management and mitigation of the effects of risks is still low.
“We are struggling to raise the
awareness by educating our clients and the public in general through
various means,” says Mr Mongi who had been working in the industry for
more than four decades. BUMACO is one of 28 registered insurance
companies operating in Tanzania.
According to Mr Mongi the country’s insurance market is very competitive following liberalisation of the industry in 1996.
Tanzania’s insurance industry dates back
to the colonial era, but in 1963, the National Insurance Corporation
(NIC) was initially established and the government had shares in the
institution.
In February 1967, the government
nationalised what were then known as the commanding heights of the
economy, including insurance and banking business — since then NIC
became the monopoly in the market until 1998, when the door was
re-opened to private players.
Mr Mongi, however, says the market was
not largely in the hands on the nationals because the law allows
foreigners to have up to two-thirds of the stake in an insurance
company. “This is not good. We have to own and manage the risks in the
country,” he stresses.
According to Tanzania Insurance
Regulatory Authority (TIRA) the total volume of business in the country
in terms of gross premiums is around 400bn/-.
The market is reportedly growing at the
annual rate of above 15 per cent. Mr Mongi told the ‘Business Standard’
over the weekend that BUMACO is a neral or property insurer, where
covers provided include fire, engineering, all risks contractors,
workmen compensation, personal and group accident, public liability and
domestic package.
Others, he said, are plate glass,
comperehensive motor, motor third party, bonds, fidelity guarantee,
money insurance, employer’s liability, electronic equipment, theft &
burglary and professional indemnity.
“We have over 30 years in business and
for us the customer is the king,” Ms Aluseta Lema, the Chief Operations
Officer said in an interview. She said that challenges include lack of
awareness of the public in general on their rights and benefits of
insurance.
Source Tanzania Daily News
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