News Africa07 Jul 2025

Cameroon:Govt moves closer to setting up public reinsurer

| 07 Jul 2025

The creation of a public reinsurer in Cameroon is expected to be a reality soon, facilitated by a law on mandatory cessions.

The establishment of a local reinsurer is a subject that has been raised by the government since at least 2019. To be called Cameroon Reinsurance Corporation, the reinsurer is to start with a capital of FCFA15bn ($27m) with shareholdings to be held by local insurance and reinsurance companies (51%), a strategic partner preferably, a reinsurer (34%), the State of Cameroon (10%), and various shareholders (5%).

The current review of the regulatory framework by lawmakers suggests that the project has made significant progress, according to local media reports. On 20 June 2025, the Cameroonian government presented a Bill to Parliament that requires insurance companies to cede a portion of their business to the competent administration or a public reinsurer. This Bill was introduced while the launch of the proposed Cameroon Re is still awaited.

Pending the establishment of the reinsurer, the government will be responsible for implementing a transitional mechanism to ensure the continuity of managing cessions.

Several African countries such as Gabon, Senegal, Algeria, and Burkina Faso already have a public reinsurer. This is not yet the case in Cameroon, which is the second largest insurance market in the CIMA zone.

The 26 insurance companies operating in Cameroon raked in a combined premium volume of FCFA285bn in 2024, according to provisional data from the Association of Insurance Companies of Cameroon. This was 3.79% higher than in 2023, with growth driven by both the non-life and life branches, which grew by 1.15% and 9.30% respectively.

The Cameroonian State was, for many years, a shareholder in a local reinsurance company, the Caisse Nationale de Reassurance (CNR), which was liquidated in 2000.

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