Dar es Salaam, 4 August 2026 — Chief Executive Officers and senior management from the 15 member companies of the Tanzania Agricultural Insurance Consortium (TAIC) have expressed broad support for the Consortium’s proposed business models and agreed to advance them through a structured 90-day validation and implementation-readiness phase. The Association of Tanzania Insurers (ATI), with support from the United Nations Development Programme (UNDP), convened the CEO Roundtable at the Four Points by Sheraton Hotel in Dar es Salaam. Representatives from the Tanzania Insurance Regulatory Authority (TIRA), the TAIC Technical Committee and other technical partners also participated. The meeting reviewed the proposed TAIC business model and considered the technical, commercial, regulatory and operational actions required to move the Consortium towards full operationalisation.

The roundtable followed the April 2026 launch of the UNDP-supported Financial Resilience in Agriculture Technical Assistance for TAIC. The assistance focuses on strengthening agricultural risk data and infrastructure; building capacity for product design, pricing and claims management; facilitating partnerships that bring relevant expertise while developing local capacity; and supporting TAIC’s governance, business model and long-term sustainability.
Tanzania’s agricultural insurance market is showing encouraging growth. 

According to figures presented in UNDP Tanzania’s opening remarks, ten insurers provided agricultural insurance in 2024, with gross written premiums reaching TZS 7.83 billion—an increase of 17 percent from the previous year. However, agricultural insurance still reaches only a small proportion of Tanzania’s farmers.
“The challenge before us is therefore not whether there is momentum, but whether we can organise that momentum into a stronger system that reaches more farmers, shares risk more effectively and creates sustainable commercial value for participating insurers,” Enock Singoei, IRFF Agriculture and Insurance Expert said in his opening remarks. At the centre of the discussions was the proposed TAIC business model, developed through extensive consultation, technical analysis and co-creation with industry stakeholders and the TAIC Technical Committee. The model positions TAIC as the insurance industry’s collective platform for agricultural risk-sharing, reinsurance coordination and market development.

Under the proposed approach, member insurers would continue originating and underwriting agricultural insurance and maintaining their relationships with clients. Agricultural risks would then be declared and channelled through TAIC under agreed cession and retention arrangements. By consolidating agricultural portfolios, TAIC would be better positioned to negotiate reinsurance terms, strengthen underwriting standards, develop shared data and operational infrastructure, coordinate product development and open market opportunities that individual insurers may not be able to secure independently. The model provides three potential pathways for building business: agricultural portfolios originated by member insurers; government- and finance-linked programmes; and commercially originated business delivered through specialised intermediaries and other distribution partners. This diversified approach would allow TAIC to build commercially viable business while positioning the Consortium to support larger national agricultural insurance programmes as they become operational.

Members agreed that the proposed models were well developed, clearly presented and provided a strong foundation for TAIC’s operationalisation. They supported moving the models forward without further unnecessary delays while completing the required technical refinements. However, this support did not constitute formal approval of the final cession ratio, reinsurance structure or detailed risk-sharing arrangements. Emphasising the importance of collective industry ownership, Rajiv Kumar, Chief Executive Officer of Alliance and also a TAIC member, said: “We want to collectively strengthen our position as an industry to cater for the national interest.” Several operating options were discussed. Some members supported establishing one common agricultural reinsurance programme managed through TAIC. Others proposed that insurers retain their existing treaties while giving TAIC the first right of refusal for agricultural risks requiring additional or facultative capacity. A 20:80 retention-to-cession arrangement was discussed as one possible starting point, alongside a fully ceded option and a phased approach that would increase participation as TAIC’s financial, technical and operational capacity grows. No single cession arrangement was formally adopted. 

Participants also considered how existing agricultural portfolios, including tobacco and other crops, could transition into the TAIC framework. Members proposed that existing business be declared to TAIC and that agricultural facultative placements and product-development processes be progressively coordinated through the Consortium, subject to the final operating and regulatory arrangements. A major issue identified was the limited availability of consolidated agricultural insurance data. Reliable information on exposures, historical losses, claims, pricing, existing treaty terms and renewal schedules will be essential for developing appropriate products, pricing risks and negotiating credible reinsurance capacity. Members therefore supported stronger data-sharing arrangements accompanied by appropriate confidentiality and competition safeguards.

Transparency, fair participation and protection of the originating insurer’s business were also identified as essential to building member confidence. TAIC will need to demonstrate clearly how premiums, commissions, claims, profits, losses and new business opportunities will be allocated among participating insurers. The roundtable further recognised the importance of institutional ownership and accountability. Member companies were encouraged to take responsibility for implementing recommendations developed through their nominated technical representatives and to ensure timely provision of the information and decisions required to advance the Consortium. Members recommended that TAIC’s existing capital be strategically used to strengthen its systems, technical capacity, product-development capabilities and ability to manage agricultural risks. Member insurers were also encouraged to use their networks, distribution channels and client relationships to originate and bring more agricultural insurance business into TAIC. 

TAIC was encouraged to diversify progressively beyond its existing portfolios by supporting additional insurance lines, including crop, livestock, fisheries, aquaculture and other relevant agricultural risks. This would expand market opportunities, increase premium volumes and strengthen the Consortium’s long-term sustainability. The newly recruited TAIC-FRA Technical Lead will serve as Team Leader for the next phase of the technical assistance. The Technical Lead will coordinate the implementation workplan, support refinement of the business model, advance product development and data systems, facilitate technical partnerships and organise capacity-building support for TAIC and its members.

UNDP emphasised that the process remains owned and led by the insurance industry. “This remains an industry-owned process. UNDP’s role is to facilitate access to technical expertise, strengthen the evidence and support implementation. Ownership, governance and commercial decisions remain with TAIC and its members.” Added Jeremiah Malongo, UNDP Operations Manager. Members supported a structured 90-day validation and implementation-readiness phase rather than treating their support for the business case as an immediate commitment to capital, binding cession volumes, treaty terms or operational launch. The validation phase will test the commercial and reinsurance assumptions, collect and analyse member data, establish confidentiality arrangements, obtain independently tested reinsurance indications, refine the workplan and budget, and develop the required legal, governance, capital and operational documentation. “This endorsement is not yet a commitment to capital, cession, treaty terms or launch. It is an agreement to proceed with disciplined validation so that future decisions are based on evidence,” further added Jeremiah

At the end of the validation period, the evidence will be presented to the TAICIC Board and member CEOs to inform a final decision on the operating model, cession and retention arrangements, reinsurance programme, capital requirements and implementation timeline. The role of TIRA will remain critical. Participants highlighted the need for clear regulatory guidance covering underwriting, cession, retention, reinsurance, product approval, reporting and the transition of existing business. An appropriate regulatory framework would support consistent industry participation while safeguarding policyholders, member companies and the stability of the agricultural insurance market.

The meeting reaffirmed the industry’s shared commitment to strengthening agricultural insurance through collaboration, innovation and collective responsibility. Moving from commitment to implementation will now require sustained industry leadership, timely access to data, active business generation by members and clear decisions on the final structure of the Consortium. UNDP remains committed to supporting TAIC through the agreed technical assistance and facilitating access to national, regional and global expertise. The immediate priority is to translate the progress achieved through consultation and technical work into an operational model that delivers tangible value to insurers, farmers and Tanzania’s wider agricultural economy.