Making Insurance Business Robust, Resilient and Sustainable Within the CIMA-Zone

Abstract

Insuring risk in a modern economy requires a lot of expertise. Insurance is a complex business and its survival will depend on better mastery of its fundamental principles and functional mechanisms. The failure of this industry could lead to social and economic disaster, and the collapse of public trust in the government of the day. There is no gainsaying that insurance plays a vital role in the functioning of a modern society as it helps to spur up many activities. The financial and capital market, banks, international trade, and the realization of heavy investments (construction of bridges, dams, roads), would not have seen the light of day if not for insurance. The government stands as a key player that has undertaken to strengthen insurance activities thus rendering it robust, resilient and sustainable. This article dissects the legal framework for the resilience of the Insurance sector within the Africa Common Insurance Market (CIMA) Zone and explores prospects of a more resilient, robust and sustainable insurance business in the zone.