To register an Insurance company in Cameroon, and to fulfill the registration process, the investor must conform to the provisions of the Law in force. The law which governs the procedure to set up an insurance company in Cameroon is the Inter-African Conference on Insurance Markets otherwise known as the CIMA Code. The CIMA code is the central insurance supervisory authority in Sub-Saharan French-speaking African countries.
To register an insurance company in Cameroon, the scope of the insurance industry must be properly understood by investors. This scope entails a combination of information, documents, and a proper compliance procedure.
SCOPE TO REGISTER AN INSURANCE COMPANY IN CAMEROON
The CIMA Code has provided for the types of companies that are subject to its supervision. These companies can operate in the insurance market. They include;
- Companies with contract liabilities whose execution depends on the length of human life or companies which request for savings for insurance investment purpose and contract specific liabilities in exchange for direct or indirect single or periodic premiums,
- Insurance companies of all types including companies carrying out an assistance activity, other than those referred above,
The CIMA Code has outlined certain forms of companies that it has recognized to operate in the Insurance Market. They include;
- Limited Liability insurance and investment companies,
- Mutual insurance companies,
- Mutual reinsurance companies.
INSURANCE COMPANY REGISTRATION PROCESS
The steps involved to register include;
REGISTER A PUBLIC LIMITED COMPANY
This is the first step in the registration process. This type of company is specified by the CIMA Code. A Physical or Moral person is eligible to register this form of company. The CIMA code has also recognized another form of company known as a Mutual Insurance Company.
A foreign company may only carry out one of the business transactions stipulated in the code or reinsurance.
PROCURE THE OPERATING LICENSE
After fulfillment of the registration of a Public Limited Company or a Mutual Insurance Company, a request for the operating license must be made to the regulatory bodies in charge. This request include the following;
- List of branches the company intends to operate,
- Mention should be made of the foreign countries in which the company intends to operate,
- Original copy of the company’s incorporation documents,
- Minutes of constituent general assembly etc.
PROCURE A MANAGER’S LICENSE
At the time of the examination of the licensing file to set up an insurance company in Cameroon, the supervisory committee shall take into consideration the qualification and professional experience of board members and managers before completing the process to register an insurance company.
The General Manager has to fulfil some conditions. These conditions touch on academic qualification, professional experience and aptitude for the position.
Some elements disqualify a person for the office of General Manager.
Article by Barr. Agbor Kima Divine NgemaKima & Partners Firm