Gabon hosted last week the 30th anniversary of the Inter-African Conference on Insurance Markets (CIMA), the regulator of the insurance market in 14 French-speaking countries in West and Central Africa.
According to the published report, 30 years after its creation, the insurance companies in the area are profitable, earning a lot of money while the populations are suspicious and have no confidence in the insurance companies. The insurance penetration rate in French-speaking Africa is only 2%.
Lawyer and insurance expert, Togolese Sylvestre Gossou believes that poverty is the real cause of the low penetration of insurance in West and Central Africa: “ You have to provide basic, daily needs. The populations do not have enough means to be able to insure themselves. It’s a reality. »
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Another factor that discourages people: the slowness of claims payment. But despite these constraints, initiatives are developing that are moving the lines. Joseph Makambou, boss of Yako Africa, launched Yako insurance in Côte d’Ivoire, which allows an individual to save for his funeral. “ To subscribe to Yako, you just need to be over 12 years old. We can start, for example, with 1 000 Francs per month. It is a product that is very accessible “, he says.
In Gabon, this type of local insurance is developed thanks to mobile money: ” We have marketed the Airtel Prévoyance contract which is a life insurance contract which is sold with a monthly contribution of 500 Francs per month. It is accessible to all budgets says Farnal Piebi, Director of Sunu Assurance.
In French-speaking Africa, only car insurance is compulsory. Insurers plead for the creation of other compulsory insurance in order to boost the market.
Insurance companies “ wear well »
Blaise Abel Ezo’o Engolo, Secretary General of CIMA, manages the problems of insurance companies and policyholders on a daily basis. Joined by RFI, he analyzes the situation of the insurance market in West and Central Africa.
For the insured and for the victims, the insurers do not pay enough, the insurers do not pay on time, the insurers have too many small conditions which prevent the contracts from being executed and the victims of accidents from being paid quickly. It is at this level that there are often misunderstandings.
Blaise Abel Ezo’o Engolo, Secretary General of CIMA