Introduction
Starting an insurance company in Cameroon requires compliance with the regulatory framework set out by the Inter-African Conference on Insurance Markets (CIMA) Code. This guide outlines the requirements, procedures, and qualifications necessary to establish an insurance company, ensuring compliance with the relevant laws and regulations.
Executive Qualifications (Articles 329 and 506 of the CIMA Code)
To qualify as an executive in an insurance company in Cameroon, candidates must meet the following criteria:
1. Educational and Professional Experience:
A graduate degree in insurance or actuarial science with at least five (5) years of professional experience in a senior management position within an insurance-related organization (insurance company, brokerage firm, or supervisory authority).
A higher education degree in economics or legal studies with a minimum of five (5) years of experience in management positions within a financial company.
A higher education degree in any field with at least ten (10) years of experience in senior management positions in a company or administrative body.
2. Reputation and Conduct:
Must fulfill conditions of good repute.
Must not have been responsible for the bankruptcy of a company without subsequent rehabilitation.
Document Requirements (Articles 328-4, 328-6, 328-7, 329-3, 330-2 of the CIMA Code)
The documentation for forming an insurance company varies based on whether the entity is domestic or foreign.
1. A) Domestic Insurance Company (CIMA Member State)
2. B) Foreign Insurance Company (Articles 328-6, 328-7 of the CIMA Code)
Required Documents:
1. Application Letter:
A stamped request addressed to the Minister in charge of Insurance, signed by the Chairman of the Board of Directors.
2. Business Scope:
A list of insurance branches the company proposes to operate.
Indication of foreign countries where the company intends to operate.
3. Corporate Documents:
One duplicate of the authentic instrument constituting the company or a certified copy.
Minutes of the constituent general meeting.
Two copies of the Articles of Association.
Certificate of bank deposit accompanied by a bank statement for the capital account.
4. Management Information:
A list of directors, managers, and key personnel with details such as full name, address, nationality, date, and place of birth.
5. Activity Program:
Details of risks the company proposes to cover.
Copies of contracts and printed materials for public distribution.
Tariffs for each insurance branch.
Reinsurance principles.
A computerization plan with estimated installation costs.
Financial Projections for the First Three Years:
Forecasted management costs.
Premium and claims predictions.
Probable cash flow situation.
Forecasted balance sheet, income statement, and profit/loss account.
Provisional C1 statement.
Forecasts for solvency margins and financial resources.
1. Share Capital Requirements:
For public limited companies: At least CFAF 1 billion, with three-quarters (3/4) fully paid in cash prior to incorporation.
For mutual insurance companies: An establishment fund of at least CFAF 800 million.
2. Head Office and General Management:
Location plan for the head office and any branches.
Legalized lease agreement for the General Management office.
3. Approval File for Executives:
Certified copy of the birth certificate (dated less than six months).
Certified copy of relevant academic diplomas.
Certificate of nationality.
Two passport-sized photographs (4×4 cm).
Criminal record extract (dated less than three months).
Signed curriculum vitae.
Certificate of non-bankruptcy.
Declaration form (CIMA model) signed by the Public Prosecutor.
Professional experience proof and description of current and past professional activities.
Residence permit for foreign applicants.
4. Additional Documents:
Any other documents deemed necessary by the regulatory authority.
Also Read : – PROCEDURE TO OBTAIN A BUSINESS LICENSE IN CAMEROON
Key Steps in the Approval Process
1. Submit all required documents to the Minister in charge of Insurance.
2. Ensure compliance with financial and operational requirements stipulated by the CIMA Code.
3. Await approval and registration of the company’s articles and activities.
Conclusion
Forming an insurance company in Cameroon involves meticulous adherence to the CIMA Code’s regulations. By meeting the outlined educational qualifications, submitting the required documentation, and fulfilling financial conditions, prospective insurers can ensure a smooth approval process. For further guidance, consult the official CIMA Code or contact the regulatory authorities.
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