The UAP Insurance is set to target untapped sectors in Tanzania including agriculture in its efforts to raise its market share to 15%. UAP’s managing director Nelson Rwihula made the announcement and said that the company, which currently controls a 3% market slice, will invest massively in complex areas to achieve its goal.
“We have set a three-year goal to increase our market share, banking on the on the firm’s regional financial muscles and the commitment of the UAP Group shareholders,” said Mr. Rwihula.
The managing director made the reports during a meeting with members of staff from Azania Bank. The meeting sought to equip the bank employees with what it takes for them to sell insurance products through the bancassurance arrangement.
Bancassurance
The Tanzania Insurance Regulatory Authority (Tira) okayed bancassurance almost two years ago. With 65% of Tanzanians engaging in farming, Mr Rwihula said agriculture offered a great opportunity for insurance companies to grow.
“We have decided to invest a lot of energy in that area by continuing to design affordable products so that everyone can be covered,” he said, noting however that awareness among farmers was still low.
A senior manager for retail banking at Azania Bank, Mr John Lohay, said bancassurance had the potential to propel the growth of the entire financial sub-sector.
“Since we started issuing bancassurance services almost two years ago, the commission we earn from the revenue stream has grown by almost 200 percent,” said Mr. Lohay.
