According to the Association of Tanzania Insurers (ATI), Tanzania's loss ratio and management expense ratio are higher than in other African countries.
In Tanzania, the expense ratio stands at 46% and the loss ratio at 54%, which gives a combined ratio of 100%.
In Uganda and Kenya, the combined ratio in each market amounts to 94%, resulting in a technical profit margin of 6%.
This situation weighs heavily on the results of local insurance companies. In order to improve profitability, insurers would have to take measures to reduce expenses and claims.
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