Investigation of challenges and mode of operation on internationalization of insurance companies in Tanzania

This study analyzed the country’s specific factors for internationalization of insurance firms with specific reference to Tanzania. Quantitative primary and secondary data were analyzed by the aid of SPSS and the study used OLS techniques for regression analysis. The study deployed a regression analysis in which the amount of foreign insurance firms with operations in Tanzania was assumed to be determined by insurance market size, GDP per capita and premium pricing. Quantitative secondary data drawn from the World Bank, National Bureau of Statistics, World Trade Centre and TIRA were also analyzed. The observation shows that, at 5% level of significant figure market size as indicated by insurance penetration, premium growth and market share offered more reasons for foreign insurance firms assume operations in Tanzania.GDP per capita and premium pricing also indicated a positive relationship with the foreign insurance firm’s establishment in the country. The study indicate that foreign firms consider: market size, extent of purchasing power (GDP per capita) and price of insurance in the Tanzanian market. The study recommended that foreign firms need to target attractive markets (such as Tanzanian insurance market) (large markets with high per capita income and low trade barriers) to succeed in their operations. The study further recommended future studies on firm and industry specific factors for internationalization of insurance firms in Tanzania.