FANAF Lomé: CIMA Article 13 Premium Forum Tackles Unpaid Premiums

• The 12th FANAF Markets Forum will take place in Lomé, Togo, from November 2-3, 2026, focusing on unpaid premiums in CIMA-governed markets.
• The forum, co-organized with APSAT, will specifically address Article 13 of the CIMA Code, which mandates premium payment for an insurance contract to take effect.
• Discussions will assess the causes of unpaid premiums and consider proposals for a binding charter on premium collection and a FANAF-CIMA cooperation framework.
• The 2011 amendment to Article 13 allowed up to 60-day payment periods for certain large risks but prohibits policy issuance/renewal for unpaid premiums.
• Proposed initiatives include enhanced supervision and the introduction of graduated sanctions to strengthen market discipline regarding premium collection.

Discussions at the upcoming forum will also explore the establishment of a binding charter to govern how premiums are collected and transferred by insurers and intermediaries, alongside a new cooperation framework between FANAF and CIMA designed to enhance oversight and implement graduated sanctions.

Lomé, Togo, is set to host the 12th Markets Forum of the Federation of African National Insurance Companies (FANAF) on November 2 and 3, 2026. This significant event, organized in collaboration with Togo’s professional association for insurance companies, APSAT, will gather insurance industry stakeholders to address the critical issue of unpaid premiums across markets governed by the Inter-African Insurance Markets Conference (CIMA).

The FANAF Markets Forum 2026 Togo will specifically focus on Article 13 of the CIMA Code. This particular provision stipulates that an insurance contract only becomes effective once the policyholder has paid the required premium. The upcoming discussions aim to thoroughly examine the current landscape of unpaid premiums, assessing their prevalence in individual markets and identifying the underlying factors contributing to their accumulation.

Key areas of investigation will include the impact of competitive pressures within the industry, the drive to achieve higher premium volumes, and the specific challenges associated with managing public-sector risks. The forum seeks to foster a comprehensive understanding of these issues to pave the way for more robust market discipline and improved financial stability within the African insurance sector.

Article 13 of the CIMA Code forms the cornerstone of premium collection regulations within the Inter-African Insurance Markets Conference framework. This article unequivocally states that an insurance contract's validity is contingent upon the policyholder's payment of the premium. The provision underwent a significant amendment in April 2011, which, while reinforcing the general principle, also introduced specific conditions and exclusions allowing for payment periods of up to 60 days for certain large risks.

This 2011 reform aimed to tighten premium-payment requirements across CIMA member states. Under the updated Article 13, insurers are explicitly prohibited from issuing or renewing specific policies if the premium remains unpaid. The upcoming forum in Lomé, occurring 15 years after these crucial amendments, provides a timely opportunity to evaluate the effectiveness of these regulations and identify persistent challenges in their enforcement.

The persistent problem of unpaid premiums not only impacts insurers' financial health but also poses risks to policyholders, as contracts may not be legally binding without proper payment. The discussions will delve into how these regulatory requirements are being applied in practice and explore potential avenues for strengthening compliance and ensuring the financial integrity of insurance operations.

A central objective of the FANAF CIMA Article 13 premium forum Lomé is to consider concrete proposals aimed at strengthening market discipline and improving premium collection. Discussions at the upcoming forum will also explore the establishment of a binding charter to govern how premiums are collected and transferred by insurers and intermediaries, alongside a new cooperation framework between FANAF and CIMA designed to enhance oversight and implement graduated sanctions.

This proposed African insurance premium collection charter would standardize practices and ensure greater accountability across the industry. The envisioned cooperation framework between FANAF and CIMA is intended to provide a more robust mechanism for supervision and enforcement, introducing a system of graduated sanctions for non-compliance with premium payment rules. Such measures could significantly alter the operational landscape for insurers and policyholders alike, fostering a more disciplined market environment.

Lawyers and compliance officers advising insurers or large policyholders in CIMA member states should closely monitor the outcomes of this forum. The potential for a binding charter for premium collection and a strengthened cooperation framework between FANAF and CIMA could lead to stricter enforcement, new compliance obligations, and the introduction of graduated sanctions related to unpaid premiums under Article 13 of the CIMA Code. These developments underscore a concerted effort to address long-standing issues and ensure the stability and reliability of the African insurance market.

Lawyers and compliance officers advising insurers or large policyholders in CIMA member states should closely monitor the outcomes of this forum. Discussions on a binding charter for premium collection and a cooperation framework between FANAF and CIMA could lead to stricter enforcement, new compliance obligations, and graduated sanctions related to unpaid premiums under Article 13 of the CIMA Code.

Source: Reporting based on industry announcements.