This document discusses the regulation of microinsurance in the CIMA zone of Africa. CIMA (Inter-African Conference of Insurance Markets) regulates insurance markets in two economic zones - UEMOA and CEMAC. It presents the key stakeholders in microinsurance like MFIs, insurance companies, health mutuals and populations. The document compares the CIMA regulation and UEMOA regulation for microinsurance, noting differences in legal structures, capital requirements, lines of business and other aspects. It concludes by discussing perspectives like some MFIs continuing self-insurance despite bans, creating insurance companies, need for realistic regulations for small mutual organizations.

1. Regulation of Microinsurance in the
CIMA zone: the perspectives!
Manila, September 18th – 20th 2013

2. Regulation of Microinsurance in the
CIMA zone: the perspectives!
Manila, September 18th – 20th 2013

3. Regulation of Microinsurance in the
CIMA zone: the perspectives!
Manila, September 18th – 20th 2013

4. Regulation of Microinsurance in the
CIMA zone: the perspectives!
Manila, September 18th – 20th 2013

5. Regulation of Microinsurance in the
CIMA zone: the perspectives!
Manila, September 18th – 20th 2013

8. Summary
Portrait of microassurance
Regulation of microassurance
Perspectives

9. Portrait
• Principal risk holders
– Associations
– Non Governmental Organizations (NGO)
– Microfinance Institutions (MFI)
– Insurance companies
– Health Mutuals
– Populations
– Government

10. 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, …

11. 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

12. 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)

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 Union of West Africa
(UEMOA)”

14. Regulation of insurance in the
CIMA zone - UEMOA

15. 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)”

16. Regulation of insurance in the
CIMA zone - CEMAC

17. 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

18. 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.

19. 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
-

20. 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

21. 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

22. 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

23. THANK YOU!