Economy & Politics

Insurance: FANAF’s executive board takes stock at mid-term

The FANAF office on the first day of the Market Forum. Dakar. Photo Financialafrik.

Formed on February 20 in Libreville, the FANAF executive board met on Friday November 20 as a prelude to the Insurance Market Forum, which is held in Dakar on November 23 and 24, 2020. Despite the pandemic which broke out in all member states from March, the FANAF office held 7 meetings, 6 of which by videoconference.

One of the first projects of the office chaired by the Gabonese César Ekomie-Afene concerns the second phase of the increase in the minimum capital of insurance companies, supposed to increase from 3 to 5 billion FCFA. The deadline for the completion of this second phase is set for May 31, 2021. “FANAF, referring to the requests of the majority of insurance companies operating in the CIMA zone, has made a request to the General Secretariat of the CIMA reasoned for postponing this deadline for five years for non-life companies and for abandoning any second phase of capital increase for Life companies. This file at the request of FANAF will be registered as a priority, at the next committee of experts ”, reads the document sanctioning the meeting of the executive board.

Another subject, the management provision applied to life insurance companies. This is a measure that impacts the profitability of said companies and slows the development of life insurance. FANAF has drawn up a referral note to the General Secretariat on the subject. FANAF has drawn up a referral note to the General Secretariat on the subject. Next December, the President and Vice-President of FANAF will participate in the meeting of the Committee of Experts to defend the point of view of the sector.

Another question that has often been in the news in the columns of Financial Afrik, the file of the legal transfer to the first franc for the benefit of the CICA-Ré. At the end of several negotiations, FANAF obtained a first adjustment focusing mainly on the levels of commissions and interest on deposits as well as the method of calculating profit sharing. This has retroactive effect.

Continuing negotiations, significant progress was made last week. From 2021, the legal cession to the first franc is reduced from 5% to 2.25% with in return the increase in the rate of legal cession on treaties from 10% to 20% and a legal cession of 10% on facultative. FANAF specifies that negotiations are continuing to clarify certain aspects of the device.

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