Reinsurance : Cameroon Wants Premium Paid Home

Cameroon is on its path to emergence and to attain that objective, legal instruments are being put in place to guarantee economic growth. This is evident in the proposed bill to institute a mandatory legal assignment of reinsurance premiums, contributions and treaties in Cameroon that was tabled in the National Assembly. The Minister of Finance, Louis Paul Motaze was before the Finance and Budget Committee of the National Assembly which has as Chairperson Hon. Rosette Moutymbo espse Ayayi, on June 23, 2025 to explain the pertinence of the document to legislators.

In his explanatory statement, the Minister said the mandatory legal assignment is a mechanism whereby insurance companies must transfer a specified share of their premiums or contributions to the dedicated authority or a public reinsurance body to ensure the effective payment of claims under a dual coverage plan. Instituting the legal assignment, Louis Paul Motaze explained, comes on the heels of an observation in which most insurance companies operating in Cameroon resort to international reinsurance, thus generating substantial yearly capital outflows estimated at FCFA 45 billion. With statistics indicating that as a result of capital overflow, the State recorded a shortfall of about FCFA 119 billion between 2019 and 2023. He then told legislators that the mandatory legal assignment will contribute towards bolstering the economy, while mitigating capital outflow, hitherto invested abroad by local insurers.

Moreover, the mecha...