Magazine date:
Feb 2018 Gabonese authorities have decided to revise legal cession rates downwards. Law 008/2017 of August 3, 2017, providing for the full increase of legal cession at 50% and the introduction of a 15% cession on reinsurance treaties, has been amended.
This law, subject of a controversy on the local market, triggered intense talks between the national insurance department (DNA), the Gobonese federation of insurance companies (FEGASA) and the national reinsurer SCG-Ré.
Talks have culminated in the adoption of the following legal cession rates:
- Cession on non-life insurance policies has been brought back to its initial 15% rate
- Cession on life insurance policies has been revised downwards going from 10% down to 8%
- Legal cession on reinsurance treaties has been set at 5%
For the record, Gabon has applied, since 2012, a 15% legal cession on non-life direct insurance policies and 10% on those pertaining to life class of business.