The expert Ousmane Dieng, in a column published in Financial Afrik, questions the relationship between banking and insurance in the context of bancassurance. LIFE insurance companies play an important role in covering risks.

LIFE insurance companies offer banks an additional "valve" of safety in their decisive role of financing the economy. This is particularly the case in the countries of West (UEMOA) and Central (CEMAC) Africa. According to Ousmane Dieng, the banks are the beneficiaries of the insurance contracts despite the fact that they have received remuneration qualified as a commercial commission (intermediary). “In economic terms, this remuneration is comparable to a “retrocession” of part of the premium without compensation which would be required under a reinsurance or co-insurance contract. Better still, they are the beneficiaries of the LIFE insurance contracts taken out by the policyholders, who are also bank customers. Then arises the expediency of the “retention” of part of the premium issued, which, in the normal order, is intended for insurance companies and reinsurers,” he explains.

The expert believes that there are a number of challenges to be met in Bancassurance activity on the CIMA market and in economies at the risk of hampering a highly strategic business sector necessary for financing economies seeking endogenous levers. Otherwise, the zone runs the risk of being satisfied with the piggy bank of the international monetary system that Africa's commercial and strategic partners will have the kindness to define and adjust upwards the allocations of SDRs. It should be noted that Ousmane DIENG has 18 years of professional experience in consulting and auditing. Mr. DIENG founded the consulting firm INGENIOUS Partners Consulting specializing in Strategy, Financial Consulting, Entrepreneurship, Organization, Performance Optimization, Control and Economy.