Dar es Salaam. Banks are now moving to 19.9 percent of the insurance premium transactions, hardly two years since the lenders ventured into the business through bancassurance.

Some 20 commercial banks have received the licence to sell insurance products on behalf of firms by December last year, according to the Tanzania Insurance Regulatory Authority (Tira).

According to Tira quarterly performance report for the three months from April 1 to June 30 last year, the total insurance premiums written in respect of both long term and general insurance businesses was Sh202.7 billion.

The report states that out of that, Sh40.361 billion (19.9 percent of the transactions) was transacted through bancassurance agents.

The report reveals that the quarterly market grew by 16.57 percent in gross premiums written to Sh202.7 billion in the period ended June 2021 as compared to Sh173.8 billion of the similar period in the previous year.

The performance was above the set target of 10.5 percent annual premium growth for the industry.

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The report said that the authority will continue with concentration of substantial resources of supervision to the bancassurance industry to enhance compliance, as well as to facilitate strategies for further development of bancassurance business into a more vibrant and efficient intermediary force.

“General insurance bancassurance business during the interim period, a total of Sh15.969 billion in general insurance premiums were collected through bancassurance agents, which is equivalent to 9.6 percent of the industry Gross Premium Written,” reads the report in part.

On the top of that, a total premium collected by bancassurance agents in respect of long-term bancassurance business amounted to Sh24.392 billion, having contributed to 66.7 percent of the Industry GPW.

Speaking to The Citizen yesterday, the Tira acting director for Planning, Research and Markets Development, Mr Zakaria Muyengi, said: “Bancassurance is among our distribution channels tht we give priority on.”

He said despite the progress, the level is yet to reach the target because out of more than 40 banks, it’s only 20 banks that are licensed for bancassurance.

“That means more effort needs to be done in ensuring others grab the emerging opportunity,” he said.

He called on banks that are already licensed to expand their services to rural areas so that more people would easily access insurance services, especially farmers and pastoralists.