Agreement on motor tariffs

In November 2012, Tanzanian insurers submitted to the regulatory authorities a proposal to increase motor insurance tariffs. Premium’ rates suggested were comprised between 3.5 and 9% of the value of vehicles. This proposal designed to offset the huge deficit in motor insurance was met with a categorical refusal of insurance agents and other market players.
Insurers have revised their proposal downwards. As of July 1, 2013, premiums’ rates will be set between 2 and 7% of the insured value. In addition, an actuarial study will be duly conducted to accurately determine premiums’ rates needed by the market.