AMRAE continues drive for more consistent insurance regulation across CIMA region

French risk and insurance management association AMRAE is using its annual meeting of Club FrancoRisk at the start of its annual conference to seek further consistency and clarity about the treatment of global programmes across French-speaking Africa.

Club FrancoRisk was launched in 2014 by AMRAE in partnership with AGRAQ, its counterpart in the Canadian province of Québec. The group’s goal is to promote risk management in French-speaking countries around the world, with a focus on Africa. It has held a number of events across Africa and helped with the creation of new risk management associations in countries such as Ivory Coast, Morocco, Togo and Burkina Faso.

The club is also an excellent platform for risk and insurance managers at many French and Canadian companies that have recently expanded across French-speaking Africa to lobby for more consistent insurance regulation in the region.

This effort is helped by the fact that the 15 French-speaking African countries have a regional regulatory body – Conference Interafricaine des Marches d’Assurances (CIMA) – that is designed to achieve greater consistency of insurance rules to help foster trade and development.

CIMA was established by treaty in 1992 and brings virtually all insurance supervisory, legislative and regulatory powers under the CIMA Code.

The code explicitly states its aim to include “taking all necessary measures to strengthen and consolidate close cooperation in the field of insurance” and to pursue the policy of “harmonisation and unification of legal and regulatory provisions relating to technical insurance and reinsurance operations”.

These rules were recently updated to try and foster even greater regional harmonisation and notably improve the level of capitalisation and solvency of regional insurers.

The region also has an insurance association – the Federation of Insurance Companies of African National Law (FANAF) – which is another useful ally in the effort to improve global programme rules and regulations.

AMRAE welcomed representatives of both bodies to its conference this week and is hopeful of further progress based on this positive ongoing dialogue.

This morning’s main Club FrancoRisk session was attended by Adama Ndiaye, president of FANAF and former member of the association’s executive committee that interfaces with CIMA.

Gilbert Canaméras, former president of AMRAE and now president of Club Franco Risk, told Commercial Risk Europe that the club is dedicated to developing risk management with a strong focus on countries across Francophone Africa.

“We have three aims,” he said. “We want to communicate about risk management, share best practice and encourage each country to form their own risk management association.”

Mr Canameras said he was delighted that Mr Ndiaye attended the African sessions at AMRAE’s conference because it reflects the importance of the changing regulations.

“Larger companies want to do business across borders and develop international programmes, but this can be difficult when the regulations change – particularly if there is a move towards local content,” he said.

This is one of the greatest challenges facing risk managers at such companies, he continued. “So, we will have discussions directly between local insurers and risk managers to identify how we can have international programmes while complying with the new CIMA rules,” said Mr Canaméras.

He added that it was a huge honour to host Mr Ndiaye and hear his views directly on possible solutions.

Another challenge, according to Mr Canaméras, is matching the requirements of the corporate risk manager in head office with the on-the-ground demands of local risk managers.

This can often involve identifying the best way to operate an international programme, but can also encompass other challenges.

More broadly, Mr Canaméras said he hopes that, through Club FrancoRisk, there is a real opportunity to increase the competency and skills of local African risk managers and generally improve risk management across the region.

AMRAE’s launch of Ferma’s Rimap certification scheme across Francophone Africa, which was also announced on the opening day of its conference, will clearly help in this regard.

Mr Canaméras added that the rise of local risk management associations, often with the support of AMRAE, will greatly help the development of the profession across the region.

He pointed to the successful launch of a risk management association in Ivory Coast, which held its first conference late in 2019. “More than 100 risk managers attended and the event was a huge success. It is an indication of the desire to improve risk management practices and to drive risk management up the boardroom agenda,” he said.