regulation of microinsurance in the cima zone: the perspectives!
DESCRIPTION
This presentation was delivered by Mr Laurent Bernard (Microinsurance Advisor at DID, Canada) at the ICMIF-AOA Development Network Seminar (18-20 September 2013; Manila, The Philippines).TRANSCRIPT
Regulation of Microinsurance in the CIMA zone: the perspectives!
Manila, September 18th – 20th 2013
Regulation of Microinsurance in the CIMA zone: the perspectives!
Manila, September 18th – 20th 2013
Regulation of Microinsurance in the CIMA zone: the perspectives!
Manila, September 18th – 20th 2013
Regulation of Microinsurance in the CIMA zone: the perspectives!
Manila, September 18th – 20th 2013
Regulation of Microinsurance in the CIMA zone: the perspectives!
Manila, September 18th – 20th 2013
Summary
Portrait of microassurance
Regulation of microassurance
Perspectives
Portrait• Principal risk holders
– Associations– Non Governmental Organizations (NGO)– Microfinance Institutions (MFI)– Insurance companies– Health Mutuals– Populations– Government
Portrait
• Risks covered – Health insurance : health care, hospitalisation,
critical illness …– Life insurance : credit-insurance, term life, total
and permanent disability and accidental death– Casualty insurance: house, car, stock, …– Agricultural insurance: fishing, livestock, crop,
harvest, …
Portrait
Bénin BurkinaCameroun Congo Côte Ivoire Mali Niger Sénégal Togo
2.30%
1.30%1.70%
0.78%0.38%
0.73%
0.00%
6.00%
3.10%
Percentage of people and goods covered by microassurance
Portrait: for the CIF
2008 2009 2010 2011
3,640
4,2704,536
4,958
329 372 439 474
Primes (000 €) Nombre de contrats (000)Premium (000 €) Number of contracts (000)
Regulation of insurance in the CIMA zone• The « Inter-African Conference of Insurance
Markets » (CIMA) is the regulator body of the insurance market in 2 economic zones in Africa:
“Economic and Monetary Union of West Africa (UEMOA)”
Regulation of insurance in the CIMA zone - UEMOA
Regulation of insurance in the CIMA zone• The « Inter-African Conference of Insurance
Markets » (CIMA) is the regulator body of the insurance market in 2 economic zones in Africa:
“Economic and Monetary Community of Central Africa (CEMAC)”
Regulation of insurance in the CIMA zone - CEMAC
Regulation of microinsurance
• Two laws govern the activity of microinsurance – Regulation No. 07/2009/CM/UEMOA dealing
with rules of social mutuality within the UEMOA
– Regulation CIMA/PCMA/PCE/2012 on microinsurance operations in member states of the CIMA
CIMA Regulation versus UEMOA Regulation
CIMA Regulation UEMOA Regulation
Legal status Limited CorporationMutual
Social mutual non for profit
Social capital or funds
Limited Corporation: 762,245 €Mutual : 457,347 € -
Authorization Approval of the Minister of Economy and Finance (Validation of the project by CIMA)
Approval by the Minister in charge of social mutuality
Branch Non-life (Casualty): Personal injury, illness, loss of crops, loss of livestock, fishing, Other agricultural insuranceDamage to propertyLife: Life, savings, retirement, disability
Health care, medico-social or cultural servicesEconomic activities to improve the living conditions of members.
CIMA Regulation versus UEMOA Regulation
CIMA Regulation UEMOA Regulation
Minimum numbers of members
Limited corporation: nilMutual : 500 members
Distributors, intermediaries
Requirement to obtain a professional license issued by the Ministry in charge of insurance
-
CIMA Regulation versus UEMOA Regulation• CIMA regulation is therefore a supranational law that
repeals all existing legislation including the CIMA Regulation
• UEMOA states continue to promote the UEMOA Regulations in contradiction with the CIMA Regulation
• The Health Mutuals in the UEMOA zone complies with UEMOA rules
• Law on Decentralized Financial Systems (DFSs) prohibits DFSs to carry on the business from another category without prior approval, including regulated insurance activities
Perspectives • Continuation of self-insurance activities by some MFIs
despite bans (Central Bank and CIMA)
• Creating insurance company by some MFIs (case for the RCPB in Burkina Faso with the participation of technical and financial partners, ....)
• Organization of Decentralized Financial Systems inside their professional structure to establish a common insurance company
• Signed distribution agreement with licensed companies (ex: agreements with Allianz Life), and in progression with societies CIF-VIE
Perspectives
• Business continuity for some Health Mutual under the UEMOA regulation
• Approval conditions under CIMA Regulation inaccessible for small-size structures
• Small-size Mutual dissolution under CIMA Regulation
• Need for UEMOA and CIMA to offer a realistic settlement
THANK YOU!