2013年-世界发展银行全球_Initial_Market_Assessment___Country_Scoping_Note--Tanzania_9页_1mb

Tanzania Insurance Market and Disaster Risk Assessment Summary

Core Content

This document outlines the current state of insurance penetration and disaster risk management in Tanzania, highlighting the challenges and opportunities for developing both catastrophe and agriculture insurance markets. It is part of a broader initiative by the Political Champions Group to stimulate insurance penetration in lower-income countries.

Key Perils and Economic Impact

• Primary natural disaster risks: Drought and flood are the main perils affecting Tanzania.
• Impact on GDP: These disasters have minimal impact on GDP but severe effects on individuals, particularly in the agriculture sector.
• Agriculture's role: Agriculture accounts for 28% of GDP and provides livelihoods to 75% of the population. It is vulnerable to production shocks and price volatility.
• Economic loss estimate: Approximately US$203 million or 3.5% of agricultural GDP is lost annually due to unmanaged production risks.

Government Engagement in Disaster Risk Management

• Policies and frameworks: Tanzania has a National Disaster Management Policy (2004) and National Operational Guidelines (2003). Zanzibar is in the process of developing its own guidelines.
• Institutional challenges: There is a lack of a Disaster Management Act, and Disaster Management Committees at regional, district, and community levels are weak.
• Budget allocation: Disaster management receives less than 1% of the national budget, and there is no dedicated fund for disaster risk reduction (DRR) at the district level.

Market-Based Solutions and Initiatives

• ARC engagement: The African Risk Capacity (ARC) is exploring parametric drought insurance for governments.
• Donor initiatives:
  • a2ii: Conducted a diagnostic on insurance access in Tanzania.
  • World Vision: Partnering with MicroEnsure and I4 to launch an insurance product for small-scale farmers.
  • FSD: Aims to improve financial sector capacity for micro, small, and medium enterprises.
  • One UN Joint Programme: Supports disaster preparedness and response.
  • AIDP: Conducted an exploratory mission and received government endorsement.
  • EC and GIIF: Funded projects and feasibility studies for index insurance.
  • ARMT: Completed an agriculture risk assessment and held a multi-stakeholder workshop.

Domestic Insurance Market

• Insurance penetration: Non-life insurance penetration is 0.77% of GDP and less than 0.6% of adults are insured.
• Market structure: The market is broker-driven, with intermediaries controlling 84% of the market.
• Mobile distribution: Insurance companies are exploring mobile phone networks for microinsurance distribution.
• Reinsurance: Limited local reinsurance capacity; most reinsurance is offshore. Tan Re is the only local reinsurance company, but its role is being phased out after 2015.

Agricultural Insurance

• Current status: There is minimal commercial agricultural insurance, with only a few pilot projects linked to micro-credit schemes.
• Potential: A large-scale agricultural insurance program could support credit expansion to rural areas by reducing production risk for lenders.
• Challenges: Agricultural value chain infrastructure is underdeveloped, and covariate risks make it difficult for financial institutions to offer credit.

Legal and Regulatory Environment

• Regulatory authority: The Tanzanian Insurance Regulatory Authority (TIRA) regulates the insurance sector under the Insurance Act 2009.
• Regulatory gaps: Current regulations do not account for catastrophe risk. Capital and solvency margins are based on fixed premiums and CPI changes.
• EAC cooperation: EAC countries have agreed on regulatory and supervisory cooperation through a memorandum of understanding.

Demand for Insurance

• Insurance demand: Despite low penetration, demand studies suggest a significant potential for microinsurance.
• Target market: Up to 16 million individuals could be underserved by insurance.
• Opportunity: With 66% of adults potentially interested in microinsurance, there is a large untapped market if infrastructure and barriers are addressed.

Opportunities for Development

• National DRFI Strategy: Establishing a national integrated disaster risk financing and insurance (DRFI) strategy could help prioritize risk management and support the development of both catastrophe and agriculture insurance.
• Kenya as a model: Using Kenya as a demonstration case could help stimulate government interest in developing these markets in Tanzania.
• Multi-year engagement: Developing the insurance market in Tanzania is expected to be a medium to long-term process due to low technical and financial capacity.

Conclusion

Tanzania presents a significant opportunity for disaster risk financing and insurance development, particularly in the agriculture and catastrophe sectors. However, due to low insurance penetration, limited technical capacity, and institutional challenges, progress will require sustained effort, donor collaboration, and policy reforms. The use of mobile distribution channels and learning from Kenya could be key to unlocking this potential.