The Evolution of Insurance in Cameroon: Challenges and Pathways for Growth”

By Gittel Ayuk.

INTRODUCTION

Insurance is legally defined as a contractual agreement between two parties—the insurer and the insured—whereby the insurer, in exchange for a premium, undertakes to compensate the insured or a third party for a specified loss, damage, or liability arising from a contingent or uncertain event.

The law defines insurance as “an operation by which, in exchange for the payment of a premium, one party (the insurer) undertakes, for a fixed or determinable term, to provide a benefit, usually monetary, to another party (the insured or a third-party beneficiary), in the event of the occurrence of a specified uncertain event (risk)^[1].”

The insurance industry in Cameroon holds significant potentials as both a catalyst for economic development and a buffer against socio-economic vulnerability. As the country continues to navigate the complex challenges of industrialization, urbanization, and social inequality, the importance of a well-functioning insurance system cannot be overstated. Insurance not only protects individuals and businesses from unforeseen financial burden—such as those resulting from accidents, illness, property loss, or death—but it also serves as a long-term savings mechanism and an enabler of investment through the mobilization of domestic resources.

In Cameroon, the insurance sector is regulated within the framework of the Inter-African Conference on Insurance Markets (CIMA), a supranational body that oversees the harmonization and supervision of insurance activities across 14 Francophone African countries countries (Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Congo Brazzaville, Equatorial Guinea, Gabon, Guinea Bissau, Ivory Coast, Mali, Niger, Senegal and Togo). Locally, the Ministry of Finance (MINFI), through its Directorate of Insurance, supervises market conduct and enforces the implementation of the CIMA Code. While this regulatory environment has contributed to relatively low rates of systemic risk, the sector remains underdeveloped in terms of market penetration, innovation, and public confidence.

Despite the growing demand for insurance in various sectors—including motor vehicle, health, agriculture, and life—the industry still faces several structural and operational barriers. These include low levels of insurance awareness, limited product diversification, inadequate use of technology, and persistent delays in claims settlements. The informal economy, which represents a significant portion of Cameroon’s GDP, is largely excluded from traditional insurance models, further exacerbating financial vulnerability among the poorest and most marginalized groups.

In recent years, both government and private sector stakeholders have begun to address these gaps. Initiatives such as the promotion of microinsurance, the introduction of digital platforms for premium payment, and government-backed risk pools for sectors like agriculture are slowly transforming the industry. Moreover, regulatory efforts to improve consumer protection, enhance transparency, and enforce timely claims processing are beginning to restore public trust.

Nevertheless, Cameroon’s insurance market remains at a crossroads. For it to realize its full developmental potential, it must evolve beyond basic risk transfer functions to become a dynamic and inclusive financial service ecosystem. This article seeks to explore the current state of the insurance industry in Cameroon, identify key actors and trends, examine the major challenges hindering growth, and recommend policy and institutional reforms that could enable a more resilient and accessible insurance landscape for all Cameroonians.

In Cameroon, the insurance sector is broadly categorized into two main types:

Life Insurance (Assurance Vie)

Life insurance involves contracts where the insurer agrees to pay a sum of money to a designated beneficiary upon the death of the insured person or after a specified period. Its purpose is to provide financial protection for beneficiaries, promotes long-term savings, and can be used for retirement planning. Common types of life insurance in Cameroon include; whole life Insurance, term life insurance, endowment policies and group life insurance

b. Non-Life Insurance (Assurance Non-Vie or General Insurance)

Non-life insurance covers property, liability, health, and other risks that are not related to life expectancy. This type of insurance offers protection against financial loss from events like accidents, fire, theft, or natural disasters Some of the key types include;

Motor Vehicle Insurance (mandatory under Cameroonian law for all vehicles)
Health Insurance
Property and Fire Insurance
Marine and Aviation Insurance
Travel Insurance
Liability Insurance
Credit and Surety Insurance.

Several domestic and international companies operate within Cameroon’s insurance sector. These prominent and key player companies contribute to the diversity and competitiveness of the insurance market in Cameroon. These players include:

AXA Assurances: A leading insurer in the non-life segment.
Activa Assurances: Known for its comprehensive insurance solutions.
Allianz Cameroon: Offers a range of life and general insurance products.
Prudential Beneficial: A significant player in the life insurance market.
SAAR Assurances (Non-life & Life)
Chanas Assurances (Non-life)
Zenith Insurance

[1] The CIMA Insurance Code.

LEGAL AND REGULATORY FRAMEWORK.

i. Regional Legal Instruments

a) CIMA Code (Code des Assurances des États Membres de la CIMA)[1].

[1] CIMA Code, adopted on July 10, 1992 (revised subsequently.

The CIMA Code is the primary legal instrument governing insurance in Cameroon and 13 other Francophone African countries. It harmonizes insurance legislation across member states and supersedes national insurance laws[1]. Under the CIMA Code, insurance companies are required to meet capital adequacy standards, submit to periodic audits, and maintain transparent claims handling processes. These rules aim to protect consumers and ensure financial soundness within the sector.

Some of its key provisions focuses on;

Licensing and regulation of insurance companies
Technical reserves and solvency margins
Rules on reinsurance
Conduct of insurance intermediaries (brokers, agents)
Supervision of policy wording and pricing
Consumer rights and dispute resolution

[1] https://www.cima-afrique.org

b) OHADA Uniform Acts

The Organization for the Harmonization of Business Law in Africa (OHADA) provides a set of uniform laws that apply to commercial entities, including insurance companies. These laws cover aspects such as company formation, corporate governance, and financial obligations, ensuring consistency and legal certainty across member states[1].

[1] https://minfi.gov.cm/en/taxes-and-levies-2/?utm_

National Regulatory Bodies and Legislation
Ministry of Finance (MINFI)

While regional oversight is provided by CIMA and CRCA, the Cameroon Ministry of Finance retains certain administrative powers. At the national level, the Ministry of Finance (MINFI), through its Directorate General of Treasury, Financial and Monetary Cooperation, oversees the regulation of the insurance market in Cameroon[1]. MINFI is responsible for granting licenses to insurance companies and intermediaries, monitoring compliance with regulatory standards, and ensuring the financial stability of the sector[2]. It has as some of its role;

To Provide initial screening for insurance license applications
To monitors the national implementation of the CIMA Code
To facilitates communication between insurance firms and CRCA
To promotes insurance market development and policy dialogue[3].

Supervisory and Professional Bodies

In Cameroon, the regulation and oversight of the insurance industry involve several supervisory and professional bodies, functioning at both national and regional (sub-regional) levels. These bodies ensure that the sector operates in a safe, ethical, and financially sound manner, in accordance with legal frameworks like the CIMA Code and OHADA laws. At the regional level it operates through CIMA (Conférence Interafricaine des Marchés d’Assurances) and at the national level through institutions under the Ministry of Finance.

Regional Insurance Control Commission (CRCA)

The CRCA is a supranational body established under the CIMA framework, tasked with supervising and regulating insurance activities across member states. It ensures compliance with the CIMA Code, conducts inspections, and has the authority to impose sanctions on non-compliant entities[4]. The CRCA acts as a transnational regulator, ensuring uniform standards across the CIMA zone. Some of its functions range from;

Approving or withdrawing insurance licenses
Verifying financial stability and technical provisions of companies
Auditing and inspecting insurance companies
Imposing administrative sanctions

Association des Sociétés d’Assurance du Cameroun (ASAC) (Association of Insurance Companies of Cameroon)[5].

The ASAC is the professional association representing insurance companies operating in Cameroon. It serves as an intermediary between the industry and regulatory authorities, promotes best practices, and facilitates the development of the insurance sector[6]. It has as purpose to ensure self-regulation, advocacy, and development of the insurance market.

Some of its key objects are;

To promote professional ethics and best practices.
To serve as an intermediary between the industry and public authorities.
To organize industry training, seminars, and market development activities.
To address disputes between insurers and support compliance.
To represents all registered insurance companies in Cameroon.

[1] Ministry of Finance, Cameroon. “Relations between the Ministry of Finance and the insurance market.” https://minfi.gov.cm/en/taxes-and-levies-2/

[2] Relations between the Ministry of Finance and the insurance market – MINFI

[3] Making Finance Work for Africa (MFW4A). “Cameroon.”

[4] (PDF) THE ROLE OF INSURANCE COMPANIES IN THE ECONOMY OF CAMEROON.pdf

[5] Association of Insurance Companies of Cameroon (ASAC). “Cameroon insurance market: 2022 provisional turnover.” https://www.atlas-mag.net/node/37327

[6] Organisation – ASAC

GOVERNMENT REFORMS AND INNITIATIVES.

There is no doubt that the insurance in Cameroon is not the best. Nevertheless, the government has taken steps towards engaging in reforms and initiatives aimed at strengthening the insurance sector in Cameroon, with emphasis on regulation, financial inclusion, and consumer protection:

Adoption and Implementation of the CIMA Code

Cameroon, as a member of the Inter-African Conference on Insurance Markets (CIMA), has adopted the CIMA Insurance Code, which harmonizes insurance regulation across Francophone Africa. It includes provisions on licensing requirements, solvency margins, claims handling procedures, consumer rights and sanctions for insurer misconduct[1].

Strengthening Supervision through the Ministry of Finance (MINFI).

The Directorate of Insurance within MINFI is tasked with enforcing compliance with the CIMA Code in Cameroon. Some of its Initiatives include regular audits of insurance companies, public awareness campaigns and tighter oversight of claims processing and broker conduct[2].

Consumer Protection Frameworks

The government is considering establishing a national insurance ombudsman or dispute resolution mechanism. This mechanism is going to be aimed reducing litigation over claims, ensuring fair treatment of policyholders and creating transparency in insurance sales practices.

Public-Private Partnership for Risk Management

The government has engaged insurers in managing public sector risks (e.g., mandatory motor insurance for state vehicles, public works insurance), as well as ongoing reforms aim to improve risk transfer mechanisms in public infrastructure and health.

PERSISTENT CHALLENGES AMIDST ONGOING REFORMS.

The above reforms show a clear government commitment to creating a more transparent, inclusive, and efficient insurance industry. It is without doubt that the insurance sector in Cameroon has steadily expanded over the past decade, yet public trust and policy effectiveness remain challenges. One of the most pressing concerns voiced by policyholders is the delay in compensation following valid claims. Long response times, administrative bottlenecks, and lack of transparency undermine the very purpose of insurance. The population has no trust for insurance companies and their policies, thus shy away.

a. Low Insurance Penetration

Cameroon’s insurance penetration rate remains below 2% of GDP[3], which is far lower than global averages. According to a report by the Association of Insurance Companies of Cameroon (ASAC), many Cameroonians do not subscribe to insurance due to a lack of awareness, mistrust, and cultural resistance to risk pooling mechanisms.

Delay in Claims Settlement

One of the key issues undermining public trust in insurers is the untimely settlement of claims[4]. Many policyholders report excessive delays in compensation, spanning months or even years—before receiving compensation. This erodes trust, discourages future uptake of policies and fuels negative perceptions about insurance. Sometimes, even when the insured fulfils all requirement needed, the insurer delays unnecessarily, thus exerting a lot of unwanted pressure and frustration on the insured. Because of this, they sometimes are forced to take huge amount of loans with very high interest rates leading to huge debts being incurred.

Weak Regulatory Enforcement and Oversight

Although the CIMA Code sets clear legal and prudential standards[5], enforcement by national authorities can be inconsistent. Some insurance companies operate with weak governance structures, leading to poor customer service and even insolvency risks.

Limited Innovation and Digitalization

Most insurance firms in Cameroon still rely on manual processes for underwriting, premium collection, and claims processing. This reduces efficiency and hinders service delivery, particularly in rural areas[6]. This comes with very lengthy and unexplained literature for clients who are unable to read through everything in a short time frame to have a quick glance and affix their signatures.

Poor Distribution Networks

Insurance products are often centralized in urban areas and formal sectors, while rural populations and informal workers remain largely uninsured due to the absence of appropriate distribution channels and lack of microinsurance products[7]. A greater population of those in the urban areas, have no insurance policy whatsoever, neither do they know insurance policy exist or have any idea of what it entails.

Shortage of Skilled Professionals

The sector suffers from a lack of qualified actuaries, underwriters, and claims assessors, which limits the development of advanced products and sound risk assessment practices[8].

Fraud, Mismanagement and lack of Trust

Fraudulent claims and internal mismanagement are widespread issues[9]. This not only inflates operational costs but also threatens the solvency of insurers and deters foreign investment. Experience has proven that sometimes insurance company are slow and not willing to compensate victims because they lack sufficient funds to do so due to mismanagement of funds. This weakens the level of trust the population has in these companies.

Lack of Transparency

Policyholders in Cameroon frequently report unclear procedures, delayed communication, and inconsistent decision-making[10] when filing insurance claims. These issues create the perception that insurers are either unwilling or unable to honor their contractual obligations. Some key issues being;

complex Documentation Requirements since insurers require excessive or unclear documentation, which is often not communicated effectively to clients at the time of policy purchase.

Discretionary Claim Denials: Some insurers apply vague contract terms to deny claims arbitrarily, creating room for abuse and dissatisfaction.
Inadequate Communication Channels: There is limited follow-up or support for clients navigating the claims process, especially in rural areas where physical access to offices is difficult.

RECOMMENDATION

To restore confidence and ensure that insurance truly serves the public, a series of improvements are urgently needed.

Mandate Insurance Coverage for Individuals and Organizations in Cameroon.

To strengthen the financial resilience of Cameroonian society and promote a culture of risk management, it is strongly recommended that the Government of Cameroon enact legislation mandating individuals and organizations to take out insurance policies relevant to their activities and risk exposure. This obligation should particularly apply to areas such as health, motor vehicle use, professional liability, building and construction, and employee safety.

The rationale for this recommendation is rooted in the vital role insurance plays in cushioning economic hardship and spreading risk. In Cameroon, many businesses and individuals operate without any form of insurance, leaving them highly vulnerable to disasters, litigation, accidents, and unexpected loss of income. For instance, informal businesses rarely cover their assets or workers, and many formal sector employers do not adequately insure employees against occupational hazards, despite the clear provisions in existing labor and social security laws.

By making insurance compulsory in specific sectors, Cameroon would not only protect citizens and businesses but also help create a more stable financial ecosystem. A broader risk pool would improve the viability of insurance companies, allow for more affordable premiums, and reduce the fiscal pressure on the government during emergencies or crises.

Strengthen Claims Processing and Reduce Delays

One of the most frequent complaints in Cameroon’s insurance industry is the length of time it takes to settle claims. To ease this process, the article recommends digitalizing the claims process. To do this, insurance companies could adopt online platforms and mobile reporting tools, reduce the lengthy and unnecessary paperwork people have to fill, as well as putting vital disposition in check to assist in speeding up the verification. To add, setting statutory time limits for claims settlement, could also help in strengthening claims processing and reducing delay. To do this, regulations should mandate insurers to resolve claims within a defined timeframe (e.g., 30 days), with penalties for unjustified delays.

Simplify Insurance Contracts and Improve Consumer Education

Many policyholders in Cameroon do not fully understand what their insurance covers—or excludes—due to the complex policy language used. To solve this, insurers should use simplified clear and accessible language in policies. The words, terms and meaning should be direct and made easily understandable for anyone taking out an insurer policy. While doing this, regulators and insurers should publish standardized policy summaries that outline benefits, limits, and claim procedures.

Enhance Regulatory Oversight and Transparency

The Ministry of Finance and the CRCA (CIMA’s supervisory arm) should intensify monitoring and enforcing compliance, particularly in areas like claim processing timelines, solvency margins, and ethical conduct. They should also penalize insurers that unduly delay compensation. To keep track and ensure this is effectively done, the Ministry should implement regulatory audits and public performance ranking of insurance companies based on claims payout efficiency. Insurers should also be required to disclose claims settlement statistics in annual reports.

Improve Communication and insurance campaigns

A major contributor to dissatisfaction is poor communication between insurers and clients. Setting up customer service hotlines and real-time tracking systems for claim status, to avoid the back-and-forth movements to insurance companies. This can improve communication and make recovery process swift.

Insurers are advised to Launch nationwide insurance literacy campaigns, especially in schools and community centers. These campaigns should be aimed at sensitizing the population especially the younger generations on what insurance entails, how to go about it and the benefits of being insured. Partnerships between insurers, regulators, and civil society can help raise awareness about how insurance works, policyholder rights, and the complaints process.

Improve the Quality and Clarity of Insurance Contracts in Cameroon

To enhance the efficiency, fairness, and enforceability of insurance practices in Cameroon, it is recommended that both the government and industry stakeholders take steps to ensure the drafting of clearer, detailed, and consumer-friendly insurance contracts. Currently, many insurance policyholders in Cameroon face difficulties due to ambiguous clauses, technical jargon, and hidden exclusions put in insurance contracts. This often leads to misunderstandings, disputes during claims, and a widespread lack of trust in insurance providers. To address these issues, insurance companies should use easy language and local translations, to clearly define coverage and exclusions. (all insurance contracts should include a clearly marked section specifying what is covered under the policy, what is excluded, the procedure for making a claim and timelines for compensation)

Promote Technological Innovation (InsurTech)

There should be the use of blockchain and AI to secure data, automate processes, and ensure that only legitimate claims are paid—and done so faster. Upon acquiring an insurance policy, insurance company should issue electronic cards which could serve the insured at any point in time. These cards should be used at hospitals, pharmacies and all places where the policy covers with a possibility of the insurance compensation being deducted immediately and the insured making paying only the remaining fee.

Insurance company should set up websites, which gives individual the possibility to read and learn about the different packages available, provides step by step procedures on how each policy can be taken out and a possibility to register and fill the forms, and subsequent payment made online. By so doing, digitalization is promoted, insurance packages are made accessible to a greater population and compensation is faster.

Microinsurance platforms that use mobile money can be encouraged to handle small-premium policies and payouts, especially in rural areas.

CONCLUSION

Insurance in Cameroon is at a crossroads. With the right mix of regulatory reform, technological innovation, and public engagement, the sector could significantly improve financial inclusion and economic resilience. While deep-rooted mistrust and logistical challenges remain, they are not insurmountable. A stronger, more inclusive insurance industry is not only desirable—it is necessary for Cameroon’s sustainable development. To improve on this, it requires a collaborative effort between insurers, regulators, and the public. By focusing on timely compensation, consumer education, technological integration, and regulatory transparency, the insurance sector can fulfill its promise: to be a reliable partner in times of need. Only then will Cameroonians view insurance not as a burden, but as a reliable source of protection and support.

[1] CIMA Code, 1995 (Revised 2012, 2015

[2] MINFI Strategic Plan for Financial Sector Development, 2020–2025

[3] ASAC Annual Report, 2022; CIMA Zone Financial Stability Review, 2021

[4] Cameroon Ministry of Finance (MINFI) – Insurance Sector Supervision Report, 2020

[5] CIMA Code, Article 300-305 ; MINFI Audit Report on Insurance Firms, 2019.

[6] World Bank Financial Inclusion Study – Cameroon, 2021

[7] African Development Bank (AfDB), “Financial Access in Africa,” 2020

[8] CIMA Professional Qualification Requirements; ASAC Human Resource Report, 2021

[9] Cameroon Financial Intelligence Unit (ANIF) – Sectoral Risk Report, 2021

[10] GlobalData. “Cameroon Insurance Industry – Key Trends and Opportunities to 2027.” https://www.globaldata.com/store/report/cameroon-insurance-industry-market-analysis/