COTE D’IVOIRE Trends and Developments Contributed by: Assemian Kouakou, Innocent Kouakou, Francky Lukanda and Lamine N’Diaye, Ofori Conseils Africa LLP
Insurance and reinsurance The insurance and reinsurance market in Côte d’Ivoire is governed by the CIMA Code, applicable in the 14 member states of the Inter-African Conference of Insurance Markets, and supervised by the Regional Insurance Control Commission (CRCA). With its size, diversification and dynamism, Côte d’Ivoire ranks at the top of the CIMA region, representing the largest share of turnover and offering the widest range of products, covering life and non-life insurance, health, accidents, transport, agriculture and industry. This harmonised framework ensures the financial sound- ness of companies, the protection of policyholders and the transparency of the market, while being com- plemented by national provisions. The development of the sector is supported by the growth of SMEs, urbanisation and digitalisation of services, as well as by the rise of inclusive insurance, aimed at the unbanked and informal segments. Prod- uct distribution relies heavily on brokers and general agents, who provide underwriting, contract manage- ment, and financial education, helping to extend cov- erage and access to insurance for a wider population. These players are essential for the promotion of prod- uct innovation and the deployment of digital services. Reinsurance is a central lever for financial stability, with recourse to regional and international markets to cover major risks, particularly related to natu- ral disasters and major infrastructure projects. The prudential requirements imposed by CIMA encour- age companies to strengthen their solvency and risk management, while regional mechanisms promote risk pooling. Despite persistent challenges, including underinsurance in certain sectors, limited financial education and economic volatility, the Ivorian market offers favourable prospects, driven by innovation, the strengthening of local reinsurance and the strategic role of brokers and general agents in the distribution and development of the sector. CIMA is an organisation whose main objective is the organisation, supervision and control of the insurance industry in the French-speaking sub-Saharan African states. It was created in 1962 to guarantee the prop- er functioning of insurance companies in the former French colonies in Africa. CIMA plays a crucial role in
regulating and protecting the interests of policyhold- ers in this region. The CRCA is the regulatory body for the CIMA insur- ance market. It is a supranational authority that super- vises and controls the insurance and reinsurance companies located within the CIMA zone. Insurance in the construction sector Two compulsory insurance policies have been intro- duced via a new bill: • Construction All Risks Insurance (CAR); and • Decennial Liability Insurance (DLI). These policies apply to all relevant stakeholders, such as project owners, construction companies, property owners and developers. CAR covers material damage and bodily injury that has occurred during the execution of construction works. It must be underwritten before commence- ment of the works. DLI coverage lasts for ten years and covers material damage affecting structural integrity or use of a build- ing after the project owner has formally accepted the Insurers must obtain licences from the Ministry of Finance’s Insurance Directorate. Types of licences include: • life; • non-life; and • composite. Requirements include incorporation as a limited liabil- ity company, financial stability, and adequate capital reserves. Capital requirements Minimum capital thresholds set by WAEMU ensure financial integrity and solvency. Life and non-life insur- ers have different minimum capital levels. construction works. Licensing standards
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