Tanzanian insurers' results penalized by high management fees

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.