Insurance laws Comoros
The insurance legal framework in the Comoros is a complex and evolving area, influenced by both national laws and regional bodies. Unlike many countries with a singular, comprehensive insurance code, Comoros' system is built on older French colonial decrees, its participation in a regional body, and more recent efforts to modernize and regulate the sector.
Here are the key elements of insurance law in the Comoros:
1. The Inter-African Conference on Insurance Markets (CIMA)
Comoros is a signatory to the treaty that established the Inter-African Conference on Insurance Markets (CIMA), a regional body that provides a uniform regulatory framework for the insurance industry across several West and Central African states. While Comoros signed the treaty, it had not ratified it as of late 2024. As a result, it is not legally bound to apply the CIMA Insurance Code, but CIMA's principles and regulations still heavily influence the national legal framework and the operations of insurance companies.
2. National Legal Texts
The primary national legal text governing insurance is a French colonial decree: the Decree of December 30, 1938. This decree, which regulates insurance and capitalization companies, is supplemented by the Law of July 13, 1930, which deals with the insurance contract. These historical texts form the basis of the insurance profession's governance.
3. Regulatory and Supervisory Bodies
The Central Bank of Comoros (BCC): The insurance market in Comoros is still in its early stages and lacks a dedicated national insurance regulator. However, the BCC is reportedly studying the possibility of taking on this supervisory role.
The Ministry of Finance: The Ministry's General Secretariat is responsible for granting authorizations for insurers to operate, a decision based on a preliminary study by the General Directorate of Public Accounting and the Treasury.
4. Compulsory Insurance
Even with the absence of a comprehensive modern code, certain types of insurance are compulsory in Comoros. These include:
Motor third-party liability insurance: This is a mandatory requirement to protect victims of road accidents.
Professional indemnity insurance: This is a requirement for insurance intermediaries.
5. Offshore and International Insurance
Comoros has also established a framework to facilitate the creation of international insurance businesses, which are regulated by the Comoros Finance Commission. These companies, known as International Business Companies (IBCs), must obtain a license to conduct international insurance activities.
6. Development and Future Outlook
Recognizing the limitations of its current framework, there are ongoing efforts to develop a more robust and modern insurance sector. These include:
Establishing a new legal and regulatory framework: There is a clear need to replace the outdated colonial-era legislation.
Developing inclusive insurance products: The UNDP and other international bodies are working with the Comorian government to develop solutions for a market with a high risk of natural disasters and other vulnerabilities.
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