1.0 Background
Tanzania, like many developing nations, faces significant challenges from climate change, socioeconomic shocks, and global health crises. These challenges have exacerbated vulnerabilities, particularly for those with limited financial resilience. The insurance sector plays a critical role in mitigating these risks by providing financial protection and stability, thus fostering economic growth and resilience. However, insurance penetration in Tanzania remains low, with limited access to tailored and affordable products, especially for underserved communities. The key challenge is the low level of insurance penetration in Tanzania, which stands at approximately 1.99% of GDP including the public insurance sector in 2022. This indicates a significant gap in financial protection, leaving individuals, businesses, and communities vulnerable to risks such as climate change, health emergencies, and economic shocks. This vulnerability undermines human development progress and exacerbates poverty and inequality.

To address this, there is a need to stimulate innovation within the insurance sector to develop products and services that are affordable, accessible, and tailored to the needs of the Tanzanian population, particularly for those in underserved regions and sectors such as agriculture, health, and small and medium-sized enterprises (SMEs). UNDP’s Insurance and Risk Finance Facility is creating an Insurance Innovation Challenge (IIC) to help tackle these major issues through advances within the insurance industry, by facilitating and incentivizing the development and launch of a set of transformative and innovative insurance products and services. Insurance intermediaries, aggregators, insur-techs, fin-techs, distribution channels, and other related private sector actors and individuals operating in Tanzania. , can apply to the IIC through a series of Calls for Proposals for financial support, along with technical assistance to scale up innovative insurance solutions.

The Insurance Innovation Challenge (IIC) presents an opportunity for Tanzania to engage the insurance industry in developing solutions that enhance financial resilience and promote inclusive growth through the Insurance Innovation Challenge, using a Hackathon modality. Technically supported by UNDP Accelerator Lab Tanzania the challenge will be organized in partnership and collaboration with the Association of Tanzania Insurers (ATI) and the Tanzania Insurance Regulatory Authority (TIRA). The event will be structured to facilitate the development of
innovative ideas over a short, intensive period, with participants working in teams to address specific challenges.
The hackathon will serve as a platform to crowdsource innovative ideas from a diverse group of participants. The   collaborative nature of a hackathon will enable participants to co-create solutions that address specific challenges faced by Tanzanians, such as limited access to insurance solutions that cover their health, the impact of climatE-change and disasters and also protection for their Small and medium- scale businesses.

1.1 Objectives

The primary objectives of the Innovation Hackathon in Tanzania are:
1. Stimulate Innovation: Encourage the development of innovative insurance products and services that are tailored to the needs of underserved populations in Tanzania.
2. Enhance Financial Resilience: Increase the financial resilience of Tanzanian communities by providing access to affordable and effective insurance solutions.
3. Promote Inclusivity: Ensure that the developed solutions are inclusive, targeting underserved regions and vulnerable populations.
4. Foster Collaboration: Bring together various stakeholders from the insurance industry, technology sector, andgovernment to collaborate on solving pressing development challenges.
5. Build Capacity: Strengthen the capacity of local insurers and related entities such as innovators and enterprises to innovate and scale solutions that meet the specific needs of the Tanzanian market.
1.2 Expected Outcomes
▪ Increased Insurance Coverage: A significant 5% increase in the number of Tanzanians covered by innovative insurance solutions
▪ Pipeline of Innovative Solutions: A robust pipeline of insurance solutions that are scalable, sustainable, and designed to meet the unique needs of the Tanzanian market, contributing to the Financial Sector Development Master Plan (FSDMP) for the Insurance Subsector of having up to Ten (10) new demand-driven insurance products developed by insurance stakeholders by 2030.
▪ Capacity Building: Enhanced capacity of local insurance companies, intermediaries, and insur- techs to develop and scale innovative products and services.
▪ Case Studies and Best Practices: Development of case studies and best practices that can be shared globally, encouraging replication and scaling of successful solutions.
1.3 Thematic Priorities
This Innovation challenge will specifically seek solution that are related to the following themes.
• Insurance for SMEs
This theme focuses on creating insurance products to address the unique risks faced by Small and Medium Enterprises (SMEs), particularly those led by women and youth. The goal is to empower these groups to build resilient and sustainable businesses.
• Health Protection
This theme targets the development of health insurance products, Solutions designed to cater to the needs of young women are highly encouraged.
• Climate Risk Insurance Solutions
This theme focuses on mitigating the financial and social impacts of climate change- related risks such as floods, drought, storm surges, cyclones, biodiversity loss and human-wildlife conflict through tailored insurance solutions.

2. Eligibility Criteria:
2.1 Eligible Applicants:
Applicants must be Insurance intermediaries, aggregators, insur-techs, Fin-techs, distribution channels, and other related private sector actors operating in Tanzania.
2.2 Focus of Solutions:
Entities applying to the Insurance Innovation Challenge 2025 must address key development needs through innovative thinking while ensuring:
• Viability: Solutions must be adaptable to local conditions, demonstrating practicality and effectiveness in the Tanzanian context.
• Sustainability & Scalability: Solutions should be designed to promote long-term sustainability and scalability, ensuring they can grow and evolve to reach wider audiences over time.
2.3 Attributes of the Solution
The challenge seeks innovative solutions that embody the following attributes:
• Building an Insurable Population: Solutions should focus on risk prevention, risk reduction, and financial protection for underserved and excluded populations who have limited access to existing insurance products. Solutions should be inclusive, addressing gaps in affordability, accessibility, and awareness.
• Sustainability and Scalability: The proposed model must demonstrate long-term sustainability by incorporating cost efficiency, adaptability to different market conditions, and the potential for scaling beyond initial implementation. Solutions should leverage technology, partnerships, or innovative business models to maximize impact.
• Development Stage and Feasibility: Solutions should be at least prototype-tested, at the MVP (Minimum Viable Product) stage, or beyond, with essential features functional and ready for real- world testing and feedback. Exceptionally promising idea-stage proposals will be considered if they present a well-defined roadmap, technical feasibility, and a viable strategy for development into a fully-fledged product.
• Innovation and Impact: Solutions should introduce new approaches or significantly improve existing models to enhance insurance accessibility, effectiveness and offer client value. They should demonstrate potential for measurable social and economic impact, particularly in addressing climate risks, health protection, and small business resilience.
2.4 Application Requirements
All applicants must meet the following criteria:
• Business Registration (For Established Solutions): Businesses with solutions at the prototype tested, MVP, or market-ready stage must be legally registered and operating in Tanzania. Proof of registration will be required.

• Institutional & Team Capacity: Applicants must demonstrate their organizational and team capacity to develop, test, and implement the proposed solution. This includes having the technical expertise, operational structures, and financial capabilities to support execution and long-term sustainability. The team should also demonstrate the ability to mobilize resources and establish strategic partnerships where necessary. Start ups will be considered if they
present a clear roadmap for development, technical feasibility, and a viable strategy for formalization or collaboration with an established entity to ensure successful implementation and scaling.
• Inclusivity & Diversity: Applications from youth, women and disability-owned businesses are strongly encouraged. Solutions that promote gender equality and social inclusion will be prioritized.
• Location: The business or lead applicant must be based in any region of the United Republic of Tanzania. However, applicants with solutions applicable across multiple regions or with the potential for national or regional expansion are encouraged.
2.5 Solution Requirements
Eligible Innovative Insurance Solutions must meet the following criteria:
• Stage of Development: Applicants must ensure that their solution fits the Stage of Development outlined in the solution's attribute and Application Requirements, with a clear pathway to scaling or formalizing it as it progresses.
• Profitability: The solution must operate as a for-profit enterprise and demonstrate the potential for becoming a sustainable, revenue-generating model.
• Innovation: The solution must offer a completely new insurance product/service or a novel approach to delivering existing insurance solutions. This reflects the Innovation attribute, which prioritizes creative, disruptive ideas that address unmet needs in the insurance market.
• Impact: The solution must demonstrate measurable commercial and social impact, solving key challenges in insurance access, affordability, or coverage, and aligning with at least one SDG.
• Scalability: The solution should show potential for replication or scalability to other regions in Tanzania or beyond, in line with the Scalability attribute, which emphasizes growth and broader applicability.
• Business Case: Solutions must target a broad section of the population or demonstrate a strong business model with viable market adoption.
2.6 Added Advantage
Solutions with the following attributes will gain additional consideration:
▪ An MVP with pilot user records or a fully functional prototype.
▪ A dedicated, full-time, and competent team with more than one founder.
▪ A strong business case and a clear market-entry strategy.
▪ A well-defined and sustainable business model.

3. Evaluation Criteria
Applications will be judged based on the following criteria:
▪ Innovation and Disruptiveness: How transformative is the solution for Tanzania and Africa?
▪ Team Composition: Technical and commercial strengths and diversity of team members and their capacity to deliver excellence based on the solution presented.
▪ Traction: Evidence of milestones, success, and progress achieved.
▪ Impact and Scale: Potential for social and commercial impact, scalability, and expansion beyond Tanzania. This should be demonstrated through a clear distribution plan. Solutions with existing distribution partnerships will be given preference.
▪ Sustainability: Viability of the business model and revenue generation strategy.
▪ Unique Selling Proposition (USP): What makes the solution unique, innovative, and impactful?
▪ Risk Mitigation: Strategies for addressing potential negative impacts.
4. Dates and duration of the call
▪ Commencement Date: 14/03/2025
▪ Closing Date: 15/04/2025
5. Technical Assistance for Idea Development
The winning overall solution will receive a combined prize money of 30,000,000 Tanzanian Shilling, along with comprehensive technical assistance for six months at the contract start date to ensure the resulting solutions are viable, sustainable, and scalable. The areas of technical assistance include:
▪ Strategic Management and Business Model Development: Crafting robust strategies and sustainable business models.
▪ Market Research: Mapping and analyzing distribution channels to identify market opportunities.
▪ Process Simplification and Improvement: Streamlining operations for efficiency and effectiveness.
▪ Digitalization and Technology: Leveraging technology to enhance operations and customer experiences.
▪ Product Design: Developing innovative and market-relevant products.
▪ Reinsurance: Integrating reinsurance strategies to manage risk effectively.
▪ Digital Solutions: Creating technology-driven solutions for scalability and impact.
▪ Social Marketing: Promoting solutions through targeted, community-focused marketing strategies.
▪ Access to Global Capacity Building and Mentorship Programs: Connecting participants with global expertise and mentorship opportunities. 

6. Application Process
▪ All completed application packs must be submitted through the designated online platform provided for the hackathon. https://forms.gle/DZTaZZqHGDc1mpfw9 
▪ Application packs must include fully completed application forms. Incomplete forms will not be assessed.
▪ All mandatory fields in the application form must be filled.
▪ Late submissions received after the deadline will not be considered.
7. Screening and Evaluation:
Applicants must successfully pass the initial screening and pitching stages to qualify for support.
8. Language
Applications may be submitted in English.