Improving Insurance Regulation and Supervision in CIMA Countries
Project Development Objective (PDO)
This project aims to improve CIMA’s (Conférence Interafricaine des Marchés d'Assurances) insurance supervision and IAIS (International Association of Insurance Supervisors) compliance and, through this effort, to contribute to the broader objective of increased insurance penetration on a sound basis of competition, efficiency, and inclusiveness in CIMA countries (Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Republic of Congo, Côte d’Ivoire, Gabon, Guinea-Bissau, Mali, Niger, Senegal, and Togo).
Background
Notably, CIMA has established a regional cooperation agreement regarding insurance supervision. However, the insurance sectors’ legal, regulatory, and supervisory frameworks do not fully comply with IAIS’s insurance core principles (ICPs), and only partial assessments have been undertaken through IAIS’s thematic peer review processes.
The regional authorities expressed a clear interest in improving insurance supervision, and sought technical assistance to apply the new international standards in a proportionate and appropriate manner within the local context of each member country. Improving insurance regulation and supervision will build confidence in insurance markets, expand coverage, and increase financial inclusion.
Activities
The technical assistance project team is currently doing the following:
1. Conducting a regional training session on IAIS principles, as well as on the guided self-assessment
methodology, processes, and expected outcomes
2. Developing a single, regional guided self-assessment report against the ICPs and designing a
comprehensive, multiyear action plan to address key issues identified
3. Providing a regional workshop to present main findings, identify aggregate training needs, and
recommend the next steps for legal and regulatory reform
4. Delivering revised reporting and analysis tools to support CIMA’s off-site supervisory functions
Expected Outcomes
The final project report expects to do as follows:
1. Increase CIMA’s understanding of international insurance standards.
2. Identify opportunities for greater collaboration among insurance supervisors in the region.
3. Identify weaknesses in supervisory capacity.
4. Establish action plans for improving insurance regulation and supervision.
5. Identify supervisory training requirements and regulatory reform opportunities.