In 1985, the government of Tanzania decided to liberalize the economy. Pursuant to this policy, the banking industry became competitive following the enactment of the Banking and Financial Institutions Act, 1991. The insurance industry which is part of the financial sector has, however; remained the monopoly of the National Insurance Corporation of Tanzania Ltd., the nations sole insurer for the last thirty-three years. The monopoly of transacting insurance business in Tanzania which has hitherto remained in the hands of the National Insurance Corporation of Tanzania Ltd. will come to an end after passage of the proposed insurance legislation. This paper examines the present state of insurance services delivery and makes suggestions on how to prepare for the forth­coming competitive insurance market.