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Car Insurance Companies in Cameroon Predict an Increase in Prices

Car Insurance

Car insurers say they are negotiating with the government to increase the cost of their benefits. For some time now, some companies have been experiencing a break in car insurance certificates.

An initiative nursed because insurers were hoping that the new price scale would come into force on 1 July 2022 before they received new certificates from the Ministry of Finance, with the prices revised upwards. But the authorities have not yet validated the increase desired by the insurance companies,” reveals a Yaounde-based company.

We learn, the insurers believe that their sector has remained marginalized. However, the cost of car stamp duty  has been increased from 100 to 150,000 FCFA for cars with more than 20 horses in 2021. On 1 June 2022, the price of the technical inspection of a car was doubled.

You can see that in the chain, tax duties have increased as well as the earnings of the technical inspection centres. But nothing is happening to the insurance companies, which cover the risks in the event of a claim. We are facing more and more costs“, reasoned one operator. He explains that, according to the price increase forecasts, the insurance of a 10-horsepower vehicle, for example, for a period of validity of two months, would rise from 18,000 to 30,000 FCFA.

However, it should be noted that this inflationary tendency in the motor insurance sector is not confirmed by the insurance department of the Ministry of Finance and the Ministry of Transport. In these administrations, the officials interviewed stated that they were not aware of such a move.

This desire to increase prices coincides with the preparation by the Ministry of Finance of a dematerialised control system for the motor insurance branch in Cameroon. The expected results are numerous.

These include the elimination of the “motor underpricing” which does not allow for the collection of sufficient premiums to settle claims; the exhaustive and instantaneous control of the applied tariff; the identification of all victims and the possibility to contact them directly; the online and individual follow-up of the settlement of each accident victim. Not to mention an instant assessment of the claims reserves set aside by each company for the branch.

mm Published on 01.08.2022

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