Tanzania Champions Agricultural Insurance to Safeguard Farmers Against Climate and Market Shocks

By Esther Mnyika, Dodoma

Dodoma, August 2025 – Farmers and livestock keepers in Tanzania are being urged to embrace agricultural and livestock insurance schemes as a critical shield against climate shocks, pests, and other disasters that threaten production and rural livelihoods.

The call was made by Dr. Baghayo Saqware, Commissioner of the Tanzania Insurance Regulatory Authority (TIRA), during the climax of the Nanenane International Agricultural Exhibition, held nationally in Dodoma on August 8, 2025.

“We are determined to reach every region, to talk to farmers so they understand how to join agricultural and health insurance systems. We urge farmers to visit the 15 companies that are now offering these services,” said Dr. Saqware.

He emphasized that the campaign is closely linked to the government’s flagship Building a Better Tomorrow (BBT) Agricultural Program, which has expanded investment in modern farming and rural resilience.

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Insurance Already Paying Dividends

The Commissioner cited a powerful example: in 2023, insurance companies collectively paid out more than TZS 3 billion to tobacco farmers in Tabora who had suffered severe losses due to natural disasters. The compensation came from a pooled fund created by agricultural insurers, highlighting the system’s ability to absorb shocks that no single farmer—or even single insurer—could bear alone.

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A Unified Effort

Speaking at the same event, Wilson Mzava, CEO of CRDB Insurance and representative of the Tanzania Agricultural Insurance Consortium (TAIC), noted that the consortium was established to ensure affordable, reliable, and rapid payouts for farmers.

“The strength of this consortium is that it allows us to reach more farmers and prevents a single company from collapsing under the weight of large-scale disasters,” Mzava explained.

This collaborative model mirrors successful agricultural insurance schemes in countries like Kenya, India, and Mexico, where risk-sharing across insurers and government support have expanded coverage to millions of farmers.

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Tackling Insurance Disputes and Building Trust

The event also highlighted the role of the Tanzania Insurance Ombudsman (TIO), established under the Insurance Act No. 10 of 2009 and Regulation No. 6 of 2013.

Mr. Jamali Mwasha, Registrar and Ombudsman, said the office exists to resolve insurance disputes through alternative mechanisms, protecting the rights of both providers and clients while strengthening public trust in the sector.

TIO’s responsibilities include:

• Registering legitimate insurance disputes.
• Advising complainants and insurers on claims.
• Facilitating mediation and arbitration.
• Delivering formal rulings where necessary.

“We are here at Nanenane to raise awareness that there is a formal office to handle insurance disputes. When people face challenges with claims, they should not lose hope. They should bring their cases to us for resolution in accordance with the law,” Mwasha emphasized.

Disputes commonly involve rejected claims such as compensation for burnt houses, car accidents, or livestock losses, all of which fall under insurance coverage when properly subscribed.

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Why This Matters

For Tanzania—where agriculture contributes over 25% of GDP and employs more than 65% of the population—insurance is not just a financial product but a pillar of resilience. With climate change intensifying floods, droughts, and pests, agricultural insurance offers farmers a safety net that encourages them to invest more confidently in modern techniques, high-value crops, and larger herds.

Globally, agricultural insurance is recognized as one of the most powerful enablers of food security and rural transformation. Tanzania’s efforts to expand awareness and adoption signal its intent to modernize its rural economy and safeguard livelihoods against mounting risks.