Effects of Insurance Services on the National Economic Growth of Tanzania

One of the main macroeconomic indicators of each country is economic growth that is measured by factors such as Gross Domestic Product (GDP). The study examined the effects of insurance services on the national economic growth. The secondary data from World Bank database was used for objective number one and Questionnaires were distributed to respondents for the uses of objective number two, three, four and five. The study used OLS for a time series data from 1976 to 2017 for objective number one and probability sampling design for other objectives that was involved 40 respondents as sample size. The overall result shows that the insurance and all insurance services provided by insurance companies based on objectives of study through financial intermediary, education, investment and professional liabilities & compensation services have positive relationship, improve productivity and significant on the economic growth. The study concludes that, the insurance companies as a part and parcel of financial institutions has the role of providing a better and quality services to customers for the purposes of promoting the national economic growth. The study also recommended that insurance companies in the country should formulate a strategy that will reduce the legal and regulatory framework in order to increase number of registered customers either individual or corporate as a way of expanding business of insurance companies that result the national economic growth to increase. Also, the study suggests that there is a need for insurance companies to expand its services not only in urban areas but also in rural areas. Keywords: Insurance Services, Insurance Company and Economic Growt