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 [4].

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.