Car insurance companies in Cameroon predict price increase –
A matured initiative because the insurers hoped that the new tariff schedule would come into force on July 1, 2022 before receiving new certificates from the Ministry of Finance, with tariffs revised upwards. But the authorities have not yet validated the increase desired by the insurance companies,” reveals a company based in Yaoundé.
We learn that insurers believe that their sector has remained marginalized. However, the cost of automobile stamp duty has been increased from 100 to 150,000 FCFA for cars with more than 20 horsepower in 2021. As of June 1, 2022, the price of the technical inspection of a car has been doubled.
“You see that in the chain, the tax duties have increased as well as the receipts of the technical control centers. But nothing happens to the insurance companies, which cover the risks in the event of a disaster. We face increasing costs“, Argued an operator. He explains that, according to price increase forecasts, the insurance of a 10 horsepower vehicle, for example, for a period of validity of two months, would increase from 18,000 to 30,000 FCFA.
However, it should be noted that this inflationary trend in the motor insurance sector is not confirmed by the insurance directorate of the Ministry of Finance and the Ministry of Transport. In these administrations, the officials interviewed declared that they were not aware of such an approach.
This desire to increase rates coincides with the preparation by the Ministry of Finance of a dematerialized control system for the automobile insurance branch in Cameroon. The expected results are numerous.
These include the elimination of the “engine underpricing» which does not allow the collection of sufficient premiums to settle claims; exhaustive and instantaneous control of the rate applied; the identification of all victims and the possibility of contacting them directly; online and individual monitoring of the settlement of each accident victim. Without forgetting an instant evaluation of the claims reserves constituted by each company for the branch.