Cameroon to introduce mandatory reinsurance cession

The Cameroonian government has submitted to parliament a bill introducing mandatory legal cession of premiums, contributions and reinsurance treaties in Cameroon.

The proposed law requires each insurance company to transfer a specified portion of its premiums or contributions to the relevant authority or to a public reinsurance company.

This decision is intended to reduce foreign currency outflows, estimated at 45 billion FCFA (79 million USD) a year.

According to the draft, Cameroonian insurers tend to rely heavily on international reinsurance. This situation has resulted in a loss of revenue for the State amounting to 119 billion FCFA (209 million USD) between 2019 and 2023.

The bill includes 28 articles aimed at strengthening supervision and regulation of the insurance sector, limiting currency flight and improving international financial resilience.