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CIMA tightens Prudential Rules: new capital and dividend restrictions reshape regional insurance market
Based in Abidjan and operating throughout the OHADA zone, Ofori Law Africa LLP offers cutting-edge expertise and nuanced understanding of cross-border trade dynamics. Managing Partner Assemian Kouakou examines insurance amendments applicable across 14 West and Central African nations
OPINION
The Council of Ministers of the Inter-African Conference on Insurance Markets (CIMA), meeting in Ouagadougou on 3 July 2026, has adopted Regulation No. 002/CIMA/PCMA/PCE/2026 (Regulation), introducing targeted amendments to the CIMA Insurance Code. These reforms reinforce the prudential framework governing insurers and microinsurance companies across the 14 CIMA Member States, including Côte d’Ivoire, indicating the regulator’s continued focus on financial resilience, market steadiness, and policyholder protection.
A central feature of the Regulation is the introduction of stricter conditions governing dividend distributions. Insurance and microinsurance companies may now distribute dividends only if they fully comply with the prudential requirements relating to the solvency margin, minimum regulatory capital and the coverage of regulated liabilities. By making regulatory compliance a precondition to shareholder distributions, the Regulation places capital preservation and policyholder protection ahead of shareholder returns. Boards of directors and shareholders’ meetings will therefore be expected to conduct a more rigorous assessment of an undertaking’s prudential position before approving any distribution.
The Regulation also materially strengthens the prudential regime applicable to microinsurance companies, recognising the sector’s growing role in expanding access to insurance across the CIMA region. Microinsurance operators must now maintain a minimum paid-up share capital of CFA Francs 500 million (approximately EUR 762,000). In addition, at least 75% of cash contributions must be paid upon incorporation and upon any capital increase, with the balance payable within three years. Any approved capital increase must likewise be fully implemented within three years of the relevant shareholders’ resolution, establishing clearer capitalisation requirements and implementation deadlines.
The reforms further require microinsurance companies to maintain shareholders’ equity of at least 80% of the statutory minimum share capital. Where equity falls under this threshold, the company must restore its financial position within one year, failing which it may be subject to the supervisory measures and sanctions provided for under the CIMA Insurance Code.
The Regulation also confirms that insurance companies offering microinsurance products remain subject to the prudential requirements governing the coverage of regulated liabilities and solvency margins. This clarification assures that microinsurance activities are subject to a consistent prudential framework irrespective of the type of institution providing them.
Taken together, these amendments represent a further step in CIMA’s efforts to strengthen the financial soundness of the regional insurance market and align its prudential framework with changing international standards. Insurers and microinsurance companies should review their capital management strategies, dividend policies and governance processes to maintain timely compliance with the revised requirements.