(Business in Cameroon) – Car insurance companies in Cameroon entered negotiations with the government to increase the cost of their services. They say they were expecting the new price grid to be effective by July 1st.
“You may have noticed that some companies have experienced a shortage of insurance certificates. The reason is that car insurers hoped the new price scale would come into effect on July 1, 2022, before they received new certificates from the Ministry of Finance. But authorities have not yet validated the increase requested,” a Yaoundé-based company explained. According to reliable sources, car insurance companies consider their activity marginalized with low revenues, although the cost of stamp duty was increased (from CFA100,000 to CFA150,000) for cars of more than 20 hp in 2021. Also, on June 1, 2022, the price of the technical inspection of a car doubled.
“Tax fees have increased, as have the revenues of the technical control centers. Insurance companies, on the other hand, which cover risks in the event of a disaster, did not see their revenues increase. We are rather facing more and more charges, ” an insurance carrier denounced. He explained that per the price increase forecasts, the insurance of a 10-hp vehicle, for example, for a 2-month validity period rise from CFA18,000 to CFA30,000.
The price increase tendency in the car insurance sector is not confirmed by the insurance department of the Ministry of Finance and the Ministry of Transport. When questioned about the issue, officials in these administrations said they were not aware of such a measure.
The desire by car insurers to increase the cost of services comes at a time when the Ministry of Finance (Minfi) initiated the dematerialization of the control system for car insurance in Cameroon. Such a move is expected to bear several