The founding philosophy of Bumaco Insurance Company, which originates from its mother company- Bumaco Ltd is to serve people in management and development. The Bumaco family aims at bringing about development through good management practices. Insurance, thus, becomes one of the management tools that are crucial for development. It is a risk management tool that brings back the person into his normal status upon a loss occurrence. This is our promise. To bring the insured back to his/her status in the event of a loss.
Bumaco Insurance Company sells promises – that is to “we will pay you when you get a loss.” This promise is the solution to the problem. We provide solutions to risks. And since we sell promises and exist to serve – we have placed claim as our main focus. We focus on paying claims. We do this through:
- Educating our customers on how to file claims and the entire process
- We strive to process the filed claims as fast as possible
- We pay claims on time
Paying claim is our first priority- and that is why we provide insurance with certainty.
The link between insurance and poverty reduction is not always in front of our minds. Many of us relate insurance to the ‘haves’. But at BUMACO, it has always been known that insurance is a service that is mostly needed by the ‘haves not’ than the ‘haves’. Insurance plays a key role in fighting poverty. As BUMACO exists to serve people in management and development, it has servie clients for 35 years in areas of rural development, risk management, micro financing, strategic planning, and feasibility studies among many other services that we offer. Since 1980, the Company has been at the forefront in the match against poverty in Tanzania and all over the world.
Insurance has been one of the Company’s core weapons in this match against poverty. In 1981, as part of its consulting services particularly in the area of risk management, the Company started an insurance agent to provide insurance services. As Tanzania adopted liberal policies in early 1990s, it got an opportunity to expand to insurance brokerage. In 2009, the Company took a further step of faith and established Insurance Company licensed to provide general insurance (marine and non-marine). The vision of Bumaco Insurance Company is - ‘insurance services with certainty’.
The match towards poverty eradication thus continues. But question remains, where and how does insurance comes in the fight against poverty? Last week during a coaching session to the Bumaco Insurance Company management team, the consultant, Mr. Nelson Kuria, who is an immediate former CEO of CIS Insurance Group of Kenya explained the way insurance fights poverty as follows:
- Insurance is a solution that empowers the people. It does so by enabling people to manage risks and assuring them of sustainable development.
- Insurance acts as a cushion for people from falling below where they are in case of a tragedy that can cause loss.
- It catalyzes development as it allows people to take more risks. It thus releases people from comfort zone into taking more risks.
- It acts and provides an immediate saving through low premium that covers a lot more.
In light of those, we all need to revisit our understanding of insurance in the developing world. We need to bring in insurance as a strategic tool in the fight against poverty. BUMACO understands this and that is why it has offered insurance policies to co-operatives (savings and credit societies- SACCOS) in rural settings. This is because it wants to cushions the farmers from falling back off. It wants to encourage them to save and take more risks by taking more loans so as they can increase their production levels.
So as to meet all its potential customers in Tanzania with the understanding that 70% are living in rural or low income regions, the Company is spread all over the country with agencies in low income regions and districts.
Since we started offering consultancy services in 1981, one group of our major clients has been faith institutions in Tanzania and the whole region of Africa. This is because faith institutions are the key development partners in Africa. They are at the forefront in the fight against poverty. As a management consultancy firm that works towards development, we have been close to these institutions in various capacities including training, development project formulations, monitoring and evaluation, strategic planning, and capacity building.
From 19th to 24th May 2015, there was a big regional conference for all Lutherans from Africa. The Conference titled - Marangu Conference - commemorated 60 years after the first Lutheran Conference in Africa (1955), which was held in Marangu, a village on the slopes of Mt. Kilimanjaro. The Conference was organized by the Lutheran World Federation and hosted by the Evangelical Lutheran Church of Tanzania. Our Managing Director, Mr. Clement Kwayu, was one of the hosting committee members. The Conference brought hundreds of people from different countries in Africa and outside Africa to Kilimanjaro. It provided opportunity to share experience and talk about issues in Africa.
These issues included diseases such as Ebola, terrorism, and other threats to peace. The need to join efforts in eradicating poverty and fighting traditional and new enemies could no further be emphasized. The participants discussed the role of the church in countering these issues in Africa as well as to ensure peace and stability in the region.
The Lutheran Church in Tanzania is an example of the ability, willingness, and capacity of the church in pushing development in Africa. With 24 major hospitals across the country, and hundreds of dispensaries and health centers, the church provides 15% of health care services in Tanzania. The church also owns hundreds secondary schools in the country and the second biggest University in the country- Tumaini- with various constituent colleges across the country offering various courses including medicine, pharmacy, law, theology, education, and business studies.
In addition, the church runs income-generating businesses such as banks, bookstores, buildings for office rents, hotels and conference centers. In this way, it has provided employment to hundred thousands of people in the country.
For such reasons, we, at BUMACO, are very proud to have worked closely with the Lutheran Church together with other Churches in Tanzania and Africa towards fighting poverty. We have, with favorable rates due to their charity nature, provided management and other expertise services to church organizations so as they can be more effective and efficient.
Literatures emanating from the World Bank and other donor agencies together with academic analyses have proven that faith institutions are key to development in Africa and crucial partners in fighting poverty. We will keep walking together with them until we realize the light that Africa is!
BUMACO- The Light To Manage!