Micro-finance, a billion CFA sector

This subsector is rich in unexploited customer, but companies are beginning to get an interest in the area. The margin of progression of (intended for low-income populations) micro-insurance in Cameroon is great, yet it is not strictly evaluated. 10-20% of the 154 billion of annual turnover (2012) of 23 active insurance companies Cameroon already come from this subset.

This statistical table has motivated the Secretary-General of the inter-African Conference of insurance markets (CIMA), Jean-Claude Ngbwa, to talk in positive terms revealing that "the potential of micro-insurance could represent many times the turnover currently directed by insurance undertakings."

The case arises, in fact, as one of the best ways to advance an activity including the penetration rate in the 14 Member States of CIMA which still remains low.

In Cameroon, the ratio of premiums issued by insurers and domestic product gross is 1.1%. To multiply this performance, the imminent arrival of firms specializing in micro-insurance, as permitted by regulation No. 003 of the CIMA by 2012 on the Organization of this type of services in the States, should increase the capacity of development of this branch of insurance little exploited.

Upcoming policyholders will be able to recruit among people with low incomes or with irregular incomes living in urban or rural, area who are accustomed to saving through the traditional structures of traditional or community manner.

The low income earner also remain an important popular category. In 2007, 39.9% of the entire population (then estimated at 17.9 million people) were living below the poverty line. A poor person, according to local standards, survives on average with less 738 frs per day.

Before the opening of a Pan-African brain trust on the subject Monday in Douala, companies that smelled this good vein had already developed products on the market. Beginning last August, a company signed an agreement with a national mutual of student solidarity.

Against 5000 F of an annual premium, the insurer offers insurance for the benefit of student subscribers, to a maximum of one million F of health spending during the same time.