The assessment of tile privatized economic sectors in Tanzania; development, challenges and future prospects: the case of the Insurance Industry

This study assesses the evolution of insurance market in Tanzania with particular interest on the situation after the economic liberalization in the country. A case study approach was adopted in this research and data was collected from 13 insurance companies, 60 individuals and corporate entities and interviews made to selected insurance experts in the market and the Insurance supervisory Department. An average response rate of over 70% was received that was quite reasonable in arriving at the conclusion drawn. Questionnaire and personal interviews were the chief methods used for data collection. Data were mostly analysed descriptively. Majority of the respondents supported the Government's decision to privatize/ liberalize the insurance sector in the mid nineteen nineties. The study found that insurance penetration to the rural sector is at the very minimal level with limited efforts to reach this potential market. It was further found that. there has been higher satisfaction on the range of products now traded and claims handling procedures as compared to the period prior to the liberalization. The lack of insurance education/knowledge among Tanzanians was revealed to be a problem towards the expansion of the sector in the country. The results also showed that the number of local Tanzanians in the insurance profession is relatively low. Finally the Insurance Supervisory Department is recommended to increase the level of stakeholders' participation in all matters concerning the industry for the achievement of sustainable growth of the sector.