Ghana is currently hosting the latest key effort toward the integration of West Africa’s insurance industry within the overall framework of the West African Monetary Zone (WAMZ). The ongoing step is the 6th meeting of the College of Insurance Supervisors of WAMZ, which is being held in Accra from September 7, 2023 to Thursday, September 14. The meeting brings together the top tier regulators of the insurance industry from all WAMZ members – Ghana, Nigeria, The Gambia, Guinea, Liberia, Sierra Leone and the members of CIMA – the sub-regional grouping of francophone West African countries (excluding Guinea, which is French-speaking but not a member of the CIMA grouping and thus is represented on a sovereign nation basis). WAICA Re, the reinsurance company owned BY THE West African Insurance Companies association, is also being represented at the meeting which Is being attended primarily by the respective insurance commissioners of member-countries although a few countries – such as Nigeria – have sent high powered surrogates instead.
The meeting is discussing ways to harmonize supervisory practices and processes and the different regulatory and prudential parameters applicable across the region. Among other things on the agenda, the meeting will sanction the presentation of the 4th Report of the College of Insurance Supervisors of WAMZ; will seek to develop a level playing field for cross-border activities among member-countries in order to facilitate the integration process, reporting dates, the supervisory functions and practices; and some financial variables that will be adopted by member-states.
Ultimately, the ongoing efforts to integrate the insurance industries of the various West African countries aim to increase insurance penetration across the sub-region, which is still far lower than in most other parts of the world. It is instructive that the insurance industry in Africa represents less than three percent of insured catastrophe losses worldwide although it is home to almost 18 percent of the global population.
Welcoming delegates to the meeting on the opening day, Michael Kofi Andoh, Ghana’s acting Commissioner of insurance, asserted: “The low level of insurance uptake across some parts of Africa, especially sub-Saharan Africa, is a key reason why meetings such as these are pivotal to the growth of insurance in our various jurisdiction.”
In his opening remarks to the delegates at the meeting, souleymane Tall, Director- Financial Integration Department of the West African Monetary Institute (W A M I, expressed appreciation to delegates for their commitment and dedication to the activities of the college, which could clearly to be seen from the progress achieved in terms of uniform reporting template, among others, but warned: “However, we must continue efforts in the option of international standards as well as the automation of our reporting”.
During the meeting, participants will discuss several crucial issues – including the status of timelines for the implementation of regulatory standards; presentation of country reports on insurance sector development; and a representation of a proposal of WAICA Re on its request for special recognition to operate across WAMI’s jurisdiction.
Another key issue to be addressed is WAFEM’s capacity- building task on ‘Consolidated and Group Wide Supervision’ assigned to it at the 5th College Meeting in Abuja, Nigeria. Consequently, WAIFEM is being represented at the ongoing meeting where member-countries will present their experiences on building blocks for consolidated and group wide framework, providing an opportunity for members to share their experiences on the best practices.
All the member-countries will present reports on both insurance sector developments in their respective jurisdictions and the status of timelines for the implementation of regulatory standards. Nigeria, Sierra Leone and Guinea will also present their perspectives and experiences on building blocks for consolidated and group wide frameworks.
A keynote address will also be delivered by Dr. Olorunsola Olowofeso, Director-General of WAMI. The final two days of the meeting will be devoted to the presentation of the report of the Technical Committee and the report to the Committee of Governors on the college’s activities respectively.