Phoenix Assurance Company Ltd is one of the oldest insurance companies in East Africa with a story that began on Tuesday, 20th November 1781, over 200 years ago. The name Phoenix was adopted in 1813.
The company grew rapidly and spread its wings far and wide. Phoenix ranks high among the leading companies in shareholders’ funds and net assets among other important attributes.
Our Staff Writer had an exclusive interview with the firm’s CEO ASHRAF MUSBALLY on how the Phoenix Assurance Company set to utilize opportunities in Tanzania’s insurance industry.
QUESTION: What is the history of Phoenix of Tanzania Assurance Co. Ltd (PTAL) and what prompted its establishment?
ANSWER: Phoenix first started operations in Kenya in 1912 with agencies in Nairobi and Mombasa. In 1992, the Company was bought by Kenyan investors. In 1997, PTAL was licensed to operate in Tanzania, and later the Company opened subsidiaries in Uganda and Rwanda.
In 2014, Phoenix of East Africa was acquired by a Mauritian insurance group, MUA, the largest insurance company in Mauritius by market capitalization. MUA is listed on the stock exchange of Mauritius and has been operating since 1948.
QUESTION: What is Phoenix’s strategy to consolidate its presence in Tanzania?
ANSWER: PTAL has the largest branch network in Tanzania comprising 9 branches and 2 sales points.
We want to optimize our existing branch operations before opening others. Zanzibar is a place worth considering due to the number of developments and projects going on there. We are also considering converting the 2 sales points into full branches in the future.
We have launched in 2021 some value-addition services on our existing motor policy, which is branded as the Utulivu benefits. This is a 24/7 free Roadside assistance providing peace of mind to our clients.
The Utulivu benefits are: ✓ Battery Jumpstart, ✓ Flat Tire assistance, ✓ Lost key,
✓ Fuel delivery, ✓ Onsite minor repair as well as ✓ Towing.
Last year, we also launched Bima Plus for Transporters which give additional insurance covers to transporters. We have also started to offer medical insurance on a small scale to specific target markets.
QUESTION: What are the company’s prospects for the year 2023 and how is it positioning itself to increase its market share?
ANSWER: Despite the fierce competition, PTAL has been growing consistently every year to become a major player on the local market and in the region. Due to our presence in the 4 countries of East Africa, we are well set to propose insurance solutions for our clients and business partners who operate regionally.
Thanks to the different Government initiatives, the country is attracting foreign investors and we believe that 2023 will be a positive year.
PTAL credit rating has consistently improved over the last 2 years and is now rated AA+ by GCR. We work with A-rated reinsurers which provide first-class security to our clients. PTAL is also known on the market to be able to provide insurance solutions on specialized risks due to our sound technical competence.
PTAL has been elected to be the market leader for the Tanzanian Energy Co-insurance Consortium and we are working closely with the different stakeholders on the LNG project in Mtwara/Lindi.
We are also working on several projects, and our objective is to contribute to increased insurance penetration rate in Tanzania, by offering simple and affordable cover to the Tanzanian people.
Agriculture insurance is one area where we are working closely with some business partners to assist our local farmers. As previously mentioned, we are offering selected medical insurance cover.
We will also consolidate our position as leader in the aviation reinsurance market.
QUESTION: What have been Phoenix Assurance Company Limited’s major achievements since its establishment?
ANSWER: There have been several events that have marked the history of PTAL. I mentioned earlier the acquisition of Phoenix by MUA in 2014. The strong balance sheet that we have been able to build over the years, is demonstrated by the GCR AA+ rating, and being elected to be the market leader of the Tanzania Energy Co-insurance Consortium.
All these achievements would not have been possible without the dedication and commitment of our staff.
QUESTION: How do the changes in the Insurance legal framework including amendments to the Insurance Act by virtue of the Finance Act No. 5 of 2022 impact Phoenix Assurance Company Ltd and the sector as a whole?
ANSWER: Phoenix welcomes improvements to the insurance regulations, particularly where individuals and businesses are better protected under these new laws. Insurance remains a key factor in economic growth and we look forward to contributing to the advancement of the country’s economy by providing quality insurance solutions where necessary. A strong regulatory framework benefits all stakeholders.
QUESTION: What role does innovation play in Phoenix Assurance Company Limited’s growth amid market challenges?
ANSWER: We see innovation more as a tool in facilitating the way we do business, rather than an actual source of business. There are some projects in the pipeline that use technology and digitalization to access our services and facilitate claims reporting, for example.
QUESTION: What is Phoenix’s competitive edge and its comparative advantages?
ANSWER: I can explain it in 3 points: Ability and willingness to pay small and large claims, we have one of strongest balance sheets on the market.
Second, presence in 6 countries; 4 of them in East Africa (Kenya, Rwanda, Uganda & Tanzania) and Mauritius and Seychelles, allowing us to service our clients cross border;
Third, the technical competence to advise on complex/specialized risks.
QUESTION: Where do you see the non-life insurance trend in the coming years?
ANSWER: Definitely, medical insurance is a key benefit that, as the society progresses, there will be a growing demand.
With the number of projects in the pipeline brought by local and foreign investments, there will be a rising demand for large and complex risks in the coming years.
Finally, we should not forget small and micro-enterprises, agriculture insurance for small and medium scale planters and farmers, who are often vulnerable and need protection from a variety of risks.
As a responsible insurer, the principles of protection and solidarity are part of our DNA, and we are conscious of the contribution we can and should make to society.
QUESTION: Why should Tanzanians take insurance as a necessary tool for their activities?
ANSWER: The very essence of insurance is to be indemnified for an unforeseen event. It is our duty as an insurer to devise simple and affordable insurance covers that will bring value and improve the lives of our citizens.
QUESTION: Last but not least, what should Tanzanians expect from Phoenix Assurance Company Ltd in the next five years?
ANSWER: On the retail side, we will develop more offerings that are simple and affordable to target segments of the market or add more value to existing products to improve the lives of individual clients.
On the corporate side, we would like to contribute more actively in the development of the country by participating in large and complex projects requiring specialized risk management and insurance solutions.