CICA-Re: modification of the legal cession in the CIMA zone

The Board of Directors of the Compagnie Commune Africaine de Réassurance (CICA-Re), meeting in Extraordinary General Meeting on 11 November 2020, approved the resolutions to reorganize the legal cession.

It is after the last negotiations by videoconference on 28 October 2020 with the FANAF Executive Board that the CICA-Re governing bodies endorsed the new legal cession rates.

As of 1 January 2021, CICA-Re shall benefit from:

• A legal cession of 2.25% on each and every policy/on all direct business of insurance companies compared to 5% currently. The health and savings activities are not affected by this change.
• A legal cession of 20% on all reinsurance treaties underwritten by insurance companies except those exclusively engaged in reinsurance operations. The rate currently applied is 10%.
• A legal cession of 10% against 5% previously on facultative business. The oil, gas and aviation activities are not concerned by this provision.

CICA-Re is conducting studies to find a definitive solution to the issue of the double legal cession on each and every policy on some markets such as Senegal and Gabon.