Britam Insurance Enters Tanzanian Market

British-American Investments Company (Kenya) Limited (BRITAM) has launched its operations in Tanzania following the successful integration of Real Insurance Company.

Britam made the announcement on its Twitter account.

Bringing 50 years of trusted experience in providing insurance. #BritamTZLaunch pic.twitter.com/Yb56FVdIaK

— Britam Cares (@BritamEA) May 5, 2016

“The new company will leverage on the strong heritage of the Britam Group built over the last 50 years,” said Dr. Benson Wairegi, the Group Managing Director.

Britam acquired Real Insurance in 2014.

The integration creates a stronger general insurance business that will enjoy significant economies of scale as well as a stronger financial, technological and human capital base.

Read: Top Six Challenges Facing the Insurance Sector in Kenya

Britam has increased its market share to rank number two in the East African market on gross premium basis.

In Tanzania, it has seven branches in Dar es Salaam, Arusha, Mwanza, Dodoma, Mbeya, and Mtwara.

During the integration period, Cytonn Investments, the Group registered significant downside growth attributed to high expense growths.

The Tanzanian insurance industry is in a growth phase, and a large proportion of the population is untapped currently at 1 percent of the country’s GDP. By mid-2014, the country had 30 insurance companies and 112 insurance brokers

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According to Trimetric Report, ‘The Insurance Industry in Tanzania, Key Trends and Opportunities to 2018’, The industry was served by 28 insurance companies, including reinsurers, as well as 79 brokers, 260 agents and 39 loss assessors and loss adjusters as of 2012.

Britam’s entry is due to the implementation of the Insurance Act of 1996 that liberalised the market paving the way for private new entrants to the market, until then a monopoly was held by the government’s National Insurance Corporation.

Ernst & Young (EY) named Tanzania as one of the most attractive markets in Sub Saharan Africa (SSA) in terms of investment opportunities in the insurance industry towards 2018in its report,” Waves of change: revisited Insurance opportunities in Sub-Saharan Africa 2016.”

The report cites Tanzania as one of the world’s strongest growth rates, averaging about 7 per cent annually. In line with overall economic performance, Oxford Economics projects annual growth in insurance premiums of 7.9% through 2018.

Regarding potential growth, Tanzania ranks fourth with 9 percent towards 2018 ahead by 5per cent from Ghana and Nigeria with 4 per cent and only 2 per cent behind Zambia, which tops the list with 11 per cent in the same period.

According to EY, GDP potential growth will be the main driver of insurance products’ premiums growth in the short-term since the survey ranks it first with 41 per cent followed by product innovation with 22 percent, regulatory changes with 15per cent, competition 11 percent, and technological changes with 10 percent.

The Company’s core business include: life, health and general insurance, pensions, unit trusts, investment planning, wealth management, off-shore investments, retirement planning, discretionary portfolio management, Property development and private Equity.