The Africa College of Insurance and Social Protection (ACISP) and the United Nations Development Programme (UNDP) have signed a memorandum of understanding (MoU) to raise the confidence of financial institutions to issue insured loans to Tanzanians.
Development Diaries reports that the ACISP Executive Chairman, Sosthenes Kewe, said the programme of capacity building will also take centre stage in the Tanzanian insurance industry.
It is understood that the project will be implemented by the International Labour Organisation (ILO) and Impact Insurance.
According to the National Insurance Commission (NIC), insurance penetration in African countries is low.
The NIC noted that South Africa had the highest level of insurance penetration (16.99 percent) followed by Namibia (6.69 percent) and Lesotho (4.76 percent) with Ghana hovering at around just one percent as of 2018.
This signifies a downward trend of insurance coverage in Africa as compared to the rest of the developing world which has been blamed on several issues by different researchers, including a lack of public confidence and trust in the insurance industry.
‘The programme further targets training experts who are already in the industry working at the insurance departments of technology companies, NGOs and policymakers’, Kewe said.
For the UNDP Tanzania Resident Representative, Christine Musisi, she said the programme aims to improve the quality and quantity of insurance through a structured approach to capacity building.
‘The key objective is to develop a sustainable model for building insurance capacity in selected countries’, she said.
Musiss further noted that in achieving this objective, UNDP’s approach is to partner with insurance training institutes, who will build their capacity to offer internationally recognised inclusive insurance training benchmarked on global experiences, lessons, and best practices.
The programme covers four modules or levels of training that involves training in inclusive insurance and customer-centric product design and customer-centric distribution and partnerships in inclusive insurance.
Photo source: Daily News
