Mali is taking steps to establish a national reinsurance company, aiming to retain more insurance premiums within the country and reduce reliance on foreign reinsurers.
Minister of Economy and Finance Alousséni Sanou introduced the proposal to the Council of Ministers on Sept. 10, highlighting the need for local capacity as the insurance market continues to expand.
Sanou said that the absence of a national reinsurer leads to a significant share of premiums being transferred abroad. The Council of Ministers’ summary indicated that the new entity would “strengthen financial sovereignty by reducing dependence on foreign reinsurers” and allow Mali to “retain a portion of the premiums ceded abroad,” as per a report from Ecofin Agency.
The company is also expected to improve the management of complex risks in sectors such as industry, mining, agriculture, and natural disasters. The initiative is designed to support economic development through investments in the banking system, Treasury bills, bonds, and other financial instruments.
Additionally, it aims to professionalize the insurance sector by creating specialized jobs and developing technical expertise in risk management.
Mali’s insurance market has shown steady growth. According to the 2023 report from the Inter-African Conference on Insurance Markets (CICA-Re), non-life insurance premiums reached 3.63 billion CFA francs (US$6.5 million) in 2023, a 66% increase from 2.18 billion CFA francs in 2022.
The move to create a national reinsurer comes at a time of significant expansion in global reinsurance capital, which reached a record US$735 billion at the half-year mark. This growth was driven by retained and redeployed earnings in both traditional and alternative capital sectors, offering new opportunities and expanded capacity for emerging markets.
Despite this progress, Mali’s insurance penetration rate remains below the West African Economic and Monetary Union (WAEMU) average, which is close to 1%. Globally, reinsurer capacity was sufficient to meet a nearly 10% increase in demand for property catastrophe limits in the first half of 2025, even as insured catastrophe losses exceeded US$100 billion.
The government said that it views the creation of a national reinsurance company as a strategy to accelerate sector growth and boost its contribution to the national economy.
What are your thoughts on this story? Please feel free to share your comments below.
