Risks: Floods, drought, earthquakes, disease outbreak and marine accidents.

Inclusive insurance: Government and regulatory bodies have been supporting inclusive insurance growth since the country’s first microinsurance regulations were put in place in 2013, and the current Insurance Sub-sector Action Plan contains several targets aimed at inclusion. At least five insurance companies offer microinsurance products, with over 77,000 of these policies sold in 2021.

Disaster risk finance: The Disaster Management Department (DMD) is responsible for coordinating disaster preparedness and response, including mobilizing funds and resources. The Government shoulders the costs of disasters, through budget reallocations as well as the National Disaster Management Fund, which is funded by a combination of public and donor funds. No sovereign risk transfer solutions or contingent credit mechanisms are in place and public assets are uninsured.

Key recommendations include: Enhance market-based research and development activities for inclusive insurance; assist the Tanzania Insurance Regulatory Authority (TIRA) to continually enhance the enabling environment for inclusive insurance; build industry capacity to innovate client-centric products and form effective partnerships; develop risk information and modelling systems for disaster risk; develop a comprehensive disaster risk financing strategy; and support next steps to adopt sovereign risk transfer solutions.

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