Dr. Saada Mkuya Salum, Minister of Finance & Planning, Revolutionary Government of Zanzibar (fourth right), together with the senior management team of Zanzibar Insurance Corporation, during the Mid Year Performance Evaluation Meeting for the period January-June 2025, held in Dodoma.
The Zanzibar Insurance Corporation (ZIC) is marking its 56th anniversary this year, celebrating a journey that began in 1969 as a state monopoly and has since transformed into a competitive market leader in Tanzania’s liberalized insurance industry.
Created under the Insurance Corporation Order No. 11 of 1969, ZIC operated as the sole insurer in Zanzibar for nearly three decades. Its founding mission reflected the socialist vision of the time: to provide individuals, businesses, and government institutions with access to affordable insurance services.
For years, ZIC functioned comfortably in that protected environment. But everything changed in 1996, when Tanzania’s economic reforms liberalised the insurance sector, opening the door to private competitors who came from almost everywhere to reap what they saw as gains in the nascent industry.
Surviving the shock
For ZIC, the policy shift was more than a challenge—it was a test of survival, they had to wake up from the comfort zone- for nothing was the same again.
“Liberalisation was a defining moment,” recalls Director of Finance and Investment, Ms. Salma Yussuf Mwinyi. “We had to shift from being the only provider to fighting for every client. It forced us to rethink everything—our products, our governance, and our relationship with customers.”
Where other state monopolies faltered, ZIC leaned into reform. It restructured its governance framework, adopted modern risk management systems, and invested in staff development.
Decision-making was decentralized, and new leadership roles—including Chief Risk, Sustainability, and Digital Officers—were introduced to align operations that suited international standards and the demands of an increasingly globalised world.
ZIC’s impact on the Isles’ economy is significant.
The corporation employs nearly 200 staff and supports over 500 intermediaries nationwide.
Rebranding and expansion
Adaptation also meant reimagining its identity. Within a few years, ZIC underwent a full rebrand, shedding the image of a slow-moving public monopoly and positioning itself as a customer-focused, competitive insurer.
The turnaround quickly produced results. Less than a year after liberalization, ZIC secured a foothold in high-value, complex sectors—underwriting sections of the Standard Gauge Railway (SGR) project and aviation ventures. By doing so, it demonstrated that a homegrown insurer could compete with multinational giants. It meant hunger for expansion paid off.
Innovation and inclusion
At the heart of ZIC’s progress has been a willingness to innovate. In 2023, it launched ZIC Takaful, a Sharia-compliant subsidiary offering Islamic insurance. The subsidiary was designed to expand access to clients who prefer products aligned with their faith.
The following year, ZIC introduced mandatory travel insurance for all foreign visitors to Zanzibar—a policy later extended across Tanzania. The move did not only enhance emergency coverage for tourists but also bolstered Zanzibar’s reputation as a safe, well-prepared destination.
Technology has played a similarly transformative role. A partnership with Tigo Pesa now Yas brought mobile-based motor vehicle insurance, allowing customers to register and pay premiums via phone—an innovation that brought services closer to clients in rural areas.
Meanwhile, a one-stop vehicle inspection and insurance centre, established in collaboration with the Zanzibar Bureau of Standards, streamlined paperwork for motorists and businesses.
Ali Mzee Ali (third left), Chairman of the Board of Directors of Zanzibar Insurance Corporation (ZIC), and Waheed Muhammad Ibrahim Sanya (second right), Registrar of the Zanzibar Treasury showing files to members of Press following the signing of a MoU between the two offices.
Economic contributions
ZIC’s impact on the Isles’ economy is significant. The corporation employs nearly 200 staff and supports over 500 intermediaries nationwide.
Its portfolio spans fire, motor, accident, marine, bond, and aviation insurance—covering risks that underpin Zanzibar’s commerce and tourism.
Fire insurance remains the largest contributor, accounting for about 30 percent of reinsurance premiums, reflecting the risks facing hotels, markets, and other commercial establishments.
Bond insurance has also emerged as a critical enabler, helping local businesses secure financing, while cargo insurance ensures continuity in Zanzibar’s import-dependent economy.
Financially, ZIC has posted a strong turnaround. Net profit surged from TSH 620.5 million in 2022 to TSH 2.12 billion in 2023, underscoring both operational efficiency and growing investor confidence.
A strategic enabler of growth
ZIC’s relevance extends far beyond conventional insurance. By underwriting projects in tourism, trade, and the blue economy—including fisheries, shipping, and offshore infrastructure—the corporation positions itself as a driver of Zanzibar’s development agenda.
Its social footprint is also growing. Partnerships with NGOs such as the Mwanamke Initiative Foundation have advanced women’s empowerment, financial literacy, and access to inclusive insurance products.
Industry accolades, including recognition as “Most Reliable Insurance Company of the Year,” have further strengthened its credibility and span.
Dr. Baghayo Saqware (right), The Commissioner of Insurance-TIRA, receiving a gift from Mr. Mohammed Shaaban the Senior Marketing and Public Relations Officer at ZIC, during the 2025 Dar Es Salaam International Trade Fair (Sabasaba).
Looking ahead
As it celebrates 56 years, ZIC is looking to the future with ambitious plans. In 2026, it expects to launch a life insurance subsidiary—expanding its portfolio into a fast-growing segment of Tanzania’s financial services industry. Its stated vision is to evolve into a dynamic, innovative, and customer-driven insurer with a footprint across East Africa.
The story of ZIC is, in many ways, the story of Tanzania’s economic transition. From its early monopoly days to its reinvention under liberalization, ZIC has shown resilience and adaptability.
It has not only survived market competition but has emerged as a key enabler of national growth.
As one industry observer put it: ZIC is no longer just Zanzibar’s insurer. It has become a strategic enabler of Tanzania’s economic transformation.
Acting CEO
Zanzibar Insurance Corporation.
