(Business in Cameroon) - In Cameroon, the new bureau of the insurers’ association ASAC intends to boost the turnover of this sector during its tenure. Indeed, in 2020, that turnover was XAF210 billion against XAF400 billion for a country like Côte d’Ivoire, which can be said to be at the same development level as Cameroon.
To bridge this huge gap, the new bureau headed by Thiery Kepeden plans to capitalize on mandatory insurances, through public authorities, we learned during the inauguration of the bureau in Douala on June 4, 2021. Indeed, in Cameroon, it is mandatory to subscribe to an all-construction risks insurance package for any construction project whose value is XAF100 million or higher.
According to the ASAC, the provision contained in a 1975 law and rendered effective through a 1977 decree is still not abided by.
Another opportunity is a provision of the 2018 finance law requiring operators to subscribe to an insurance policy for containers leaving ports. This provision is also still not implemented by the concerned parties.
Although the implementation of the mandatory insurance provisions can boost insurance companies’ turnover and increase the country’s insurance penetration rate, there is a lingering fear that the additional costs incurred by operators could be passed on to the whole consumption chain, therefore, increasing prices of goods and services.