Insurance companies play several roles in the economy.
They help to mitigate the economic consequences of damage to persons or property (which must be the consequence of unforeseeable events). They also compensate for the economic costs related to life events (retirement, death, access to university, etc.) and can also serve as an excellent means of saving in some cases.
With capitalization products, insurers drain more and more savings every year thanks to certain tax incentives for subscribers.
Finally, the savings collected by insurers are reinjected into national economies through various investments in treasury bills and fund investments. However, this role remains minor in Africa, where the size of the insurance industry is relatively modest.
The insurance sector is generally highly regulated. In Francophone Africa, supervision is provided by ICIM (Inter-African Conference on Insurance Markets.).
CJEA