UNDP-坦桑尼亚联合共和国的包容性保险和风险融资（英）-2023.4-25页_368kb

Inclusive Insurance and Disaster Risk Financing in Tanzania

Overview

This report provides a high-level snapshot of inclusive insurance and disaster risk financing in the United Republic of Tanzania, based on a country diagnostic by UNDP. It aims to facilitate collaborative action between stakeholders, including government agencies, insurers, and development partners to enhance resilience and support sustainable development.

Current Situation

• Key Risks and Hazards: Tanzania faces significant risks from floods, droughts, earthquakes, disease outbreaks, marine accidents, and pests. Climate change is exacerbating these, with economic losses in sectors like agriculture and frequent population displacement.
• Inclusive Insurance: The market shows progress since 2013, with five insurers offering microinsurance products totaling over 77,000 policies in 2021. Enabling policies from TIRA and the FSDMP aim to boost inclusion, but challenges remain, including limited regulatory support, insufficient consumer trust, and inadequate distribution channels, especially in rural areas.
• Disaster Risk Financing: Most disaster costs are borne by the government through budget reallocation and the National Disaster Management Fund, funded primarily by public and donor sources. However, there are no sovereign risk transfer solutions, contingent credit mechanisms, or comprehensive disaster risk assessments, leading to significant funding gaps and delayed responses.

Recommendations

• Enhance market-based research and development to improve inclusive insurance products and address consumer needs.
• Build capacity and partnerships for disaster risk information systems, modeling, and multi-risk assessments.
• Develop a comprehensive disaster risk financing strategy, including sovereign risk transfer options and integrated government decisions.
• Strengthen enabling policies and regulations, such as reviewing microinsurance regulations to reduce burdens and promote sector innovation.
• Support consumer education and awareness programs to increase trust and uptake of insurance, particularly among underserved groups.