The Tanzania Insurance Regulatory Authority (TIRA) has issued a notification, directing that all energy-related insurance risks must be directly underwritten through the Tanzania Energy Coinsurance Consortium (TECC).
The energy-related insurance risks include but are not limited to risks associated with power generation, transmission, distribution, oil and gas operations, and renewable energy projects, says TIRA.
The directive took effect from 5 May 2025, the date of the issuance of the directive, and applies to all insurance companies operating within Tanzania.
TIRA said, “The objective of this measure is to ensure risk pooling, improve underwriting capacity, enhance technical expertise, and strengthen the financial stability of the national energy insurance sector.”
All insurers, brokers, and stakeholders are required to adhere strictly to the directive. TIRA said, “Failure to comply may result in regulatory action in accordance with applicable laws and guidelines.”
The TECC, launched in November 2022, was formed by 22 insurance companies in Tanzania. They participate in a fund that will cover the risks of large energy projects in the country. Singly, the insurers could not cover large risks in sectors such as oil and gas.