2023-05-08-UNDP-坦桑尼亚联合共和国的包容性保险和风险融资_25页_352kb

Inclusive Insurance and Disaster Risk Financing in Tanzania: Summary

Background

This report presents the findings from a diagnostic assessment on inclusive insurance and disaster risk financing in the United Republic of Tanzania, conducted by UNDP. It serves as a high-level overview to facilitate discussions and collaborative actions among stakeholders, including government agencies, insurance sector actors, and development partners, aiming to advance inclusive insurance and disaster risk finance.

Key Findings

Hazard and Risk Profile

Tanzania faces significant risks from natural disasters, including floods, droughts, earthquakes, disease outbreaks, and marine accidents. Floods and droughts are the most frequent and costly, with average annual losses totaling an estimated $168 million in 2021-2022. Zanzibar's island geography exposes it to more flood and marine risks. Climate change exacerbates these threats, with potential increases in affected populations and economic losses.

Current State of Inclusive Insurance

The enabling environment includes regulations like the 2013 Microinsurance Regulations and the Insurance Sub-sector Action Plan (ISAP), which set targets for inclusive insurance growth by 2030, such as increasing insurance coverage and targeting marginalized groups. Currently, at least five insurance companies offer microinsurance products, with around 77,000 policies sold in 2021. However, challenges include low trust and awareness, limited distribution channels (traditional agents dominate, but mobile and bank-based options are growing slowly), and regulatory gaps, such as requirements for quick claims settlement and restrictions on product types. Life and health insurance sectors are in early development, with informal coping mechanisms still prevalent among target populations like farmers and MSMEs.

Current State of Disaster Risk Finance

Disaster recovery costs are primarily borne by the government through budget reallocations and the National Disaster Management Fund (NDMF), funded by public and donor sources. At less than 1% of the budget, allocations are insufficient, and there are no sovereign risk transfer mechanisms or contingent credit arrangements. This approach leads to delays in response, with limited data for informed planning and a high funding gap comparing to disaster losses.

Recommendations for Advancement

Enhancing Inclusive Insurance

• Improve market research and consumer education to build awareness and trust.
• Strengthen the regulatory environment, including reviewing microinsurance regulations.
• Promote innovative partnerships for distribution, such as with telecom and microfinance institutions.
• Develop targeted products for underserved groups, including weather-indexed insurance for agriculture.
• Consider subsidies or social protection schemes to buffer the poorest from shocks.

Disaster Risk Financing

• Establish a national disaster risk database and modeling systems to assess economic impacts.
• Develop a comprehensive disaster risk financing strategy, including sovereign risk transfer options.
• Train decision-makers on risk layering and coordinate funding mechanisms for faster response.

Way Forward

Collaborative efforts between UNDP, stakeholders, and government bodies are urged to implement recommendations, aiming to reduce vulnerability and enhance resilience through integrated risk management and inclusive financial solutions. Key actions include periodic research, regulatory reforms, and capacity-building initiatives to support sustainable growth in insurance penetration and disaster risk coverage in Tanzania.