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As part of its ongoing efforts to strengthen its prudential framework, the Inter-African Conference on Insurance Markets (CIMA) has introduced new regulations amending two provisions of the Insurance Code.
The first amendment concerns dividend distribution. Insurers and reinsurers operating in the 14 CIMA Member States must now satisfy three prudential requirements (compliance with the solvency margin, minimum capital requirement, and coverage of regulated liabilities) before distributing dividends to shareholders.
The new regulation also revises provisions governing microinsurance companies. The minimum authorized capital remains unchanged at 500 million CFA francs (869 570 USD). Shareholders are now required to pay at least 75% of their capital contribution in cash before the company's final incorporation, with the remaining 25% to be paid within three years. The same requirements also apply to capital increases.
In addition, microinsurance companies must maintain shareholders' equity equivalent to at least 80% of the minimum share capital.
