Regulation of microinsurance in the CIMA zone: the perspectives!

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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).

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Regulation of microinsurance in the CIMA zone: the perspectives!

  1. 1. Regulation of Microinsurance in the CIMA zone: the perspectives! Manila, September 18th – 20th 2013
  2. 2. Regulation of Microinsurance in the CIMA zone: the perspectives! Manila, September 18th – 20th 2013
  3. 3. Regulation of Microinsurance in the CIMA zone: the perspectives! Manila, September 18th – 20th 2013
  4. 4. Regulation of Microinsurance in the CIMA zone: the perspectives! Manila, September 18th – 20th 2013
  5. 5. Regulation of Microinsurance in the CIMA zone: the perspectives! Manila, September 18th – 20th 2013
  6. 6. Summary Portrait of microassurance Regulation of microassurance Perspectives
  7. 7. Portrait • Principal risk holders – Associations – Non Governmental Organizations (NGO) – Microfinance Institutions (MFI) – Insurance companies – Health Mutuals – Populations – Government
  8. 8. 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, …
  9. 9. Portrait 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
  10. 10. Portrait: for the CIF 3,640 4,270 4,536 4,958 329 372 439 474 2008 2009 2010 2011 Primes (000 €) Nombre de contrats (000)Premium (000 €) Number of contracts (000)
  11. 11. 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)”
  12. 12. Regulation of insurance in the CIMA zone - UEMOA
  13. 13. 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)”
  14. 14. Regulation of insurance in the CIMA zone - CEMAC
  15. 15. 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
  16. 16. CIMA Regulation versus UEMOA Regulation CIMA Regulation UEMOA Regulation Legal status Limited Corporation Mutual 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 insurance Damage to property Life: Life, savings, retirement, disability Health care, medico- social or cultural services Economic activities to improve the living conditions of members.
  17. 17. CIMA Regulation versus UEMOA Regulation CIMA Regulation UEMOA Regulation Minimum numbers of members Limited corporation: nil Mutual : 500 members Distributors, int ermediaries Requirement to obtain a professional license issued by the Ministry in charge of insurance -
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. THANK YOU!

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