Changes to permitted reinsurance placements outside CIMA countries
A recent amendment to the Insurance Code in CIMA zone countries limits permitted reinsurance placements outside the CIMA zone.
A recent amendment to Article 308 of the Insurance Code in CIMA (Conférence Interafricaine des Marchés d'Assurances) zone countries limits permitted reinsurance placements outside the CIMA zone to 50% (previously 75%). Local insurers must obtain local regulatory approval to have more than 50% of a risk reinsured abroad.
The amendment also expressly prohibits certain classes of business from being reinsured abroad, therefore they cannot be reinsured at Lloyd’s. These classes are:
- Life and death;
- Land vehicles except for railway stock;
- Goods in transit;
- Motor liability;
- Tontines; and
- Unit-linked insurance.
Crystal has been updated with the above information for the CIMA zone countries, which are: Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Comoro Islands, Congo, Equatorial Guinea, Gabon, Ivory Coast, Mali, Niger, Senegal and Togo.
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