TAIC National Agriculture and Inclusive Insurance Lead

Organizational Context

Agriculture drives Tanzania's economy, contributing 27.7% of GDP and employing 65% of the population, yet remains highly vulnerable to climate risks. Agricultural insurance accounts for less than 1% of the insurance market despite rapid growth—from TZS 222 million in 2019 to TZS 6.65 billion in 2023.

The Financial Sector Development Master Plan targets insurance premiums to reach 5% of GDP by 2030, with agricultural insurance contributing 10% of total premiums. To support this goal, the Tanzania Insurance Regulatory Authority (TIRA) and stakeholders are finalizing the establishment of the Tanzania Agriculture Insurance Scheme (TAIS), aimed at delivering targeted insurance solutions. In 2023, the Tanzania Agriculture Insurance Consortium (TAIC) was launched, led by the insurance industry, with TanRE appointed as Consortium Manager and National Insurance Corporation (NIC) as Lead Insurer. TAIC brings together 15 insurers under a shared risk model to drive product innovation and market growth.

Challenges

Despite growing interest in agricultural insurance in Tanzania, several challenges hinder its effective implementation, including:

• Lack of suitable insurance products for priority crops
• Low farmer awareness and financial literacy
• Limited technical capacity within the Tanzania Agricultural Insurance Consortium (TAIC)
• Insufficient human resources
• Limited exposure to international models
• Inadequate access to reliable farm-level data

These issues continue to constrain TAIC's ability to lead and scale inclusive agricultural insurance solutions.