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 general 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.
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 general 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.
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