The experience of African oil-producing countries has always taught us that the places where black gold (oil) and gas are discovered are coveted and abused. This is therefore the opportunity to admit that the added values that could be drawn from the exploitation of these riches can be canceled out by the harmful action of dark forces, the lack of mastery of the real issues and even by the immobility of actors in certain sectors of the national economy. Fortunately, the taking into account of “Local Content” and its embryonic framework initiated by the law constitute at least the expression of a political will to protect the socio-economic interests of Senegal. The real benefits that could result from this point to a better tomorrow for all sectors of the economy that would take action in time by showing a spirit of anticipation and adaptation. As a reminder, the management of "local content" is an unexpected opportunity for our country to raise the "competence platform" and the "business platform" of national companies without discrimination in order to "strengthen their national and international competitiveness". The objective targeted by the public authorities through the said law adopted on January 24, 2019 would undoubtedly be the development of the national economy through above all inclusive growth with the main lever taking into account and giving preference to national companies in all areas. where they can intervene and which would be related to the chain of exploitation of oil and gas resources In the financial and insurance sector in particular, the achievement of this objective will have to go through the optimal local domiciliation of the risks to be insured and the maintenance possible large flows of capital in the Senegalese and even African (CIMA) insurance and reinsurance market. It should nevertheless be recognized that, to date, the Senegalese market has not yet offered adequate solutions for raising its low capacity to absorb financial flows likely to be brought into play within the framework of the insurance of risks inherent and related to hydrocarbons. Admittedly, an oil and gas pool has been created, but it encourages the transfer of almost all the premiums generated from foreign reinsurance companies outside the CIMA zone in general and outside the Senegalese market in particular, despite the protective regime of article 308 of the CIMA code. A major flight of capital to the detriment of the national economy will follow; which would be at odds with the philosophy of “local content” and the real intentions of the public authorities. It is then up to the insurance professionals to properly inform them (the public authorities) of this before issuing the implementing decrees for the law on "local content", to reflect on the possibilities of favoring a considerable increase in priority the capacity of the Senegalese insurance market in addition to the opportunities offered by the CIMA market. Article 308 of the CIMA code has certainly provided, depending on the nature of the risks, cases of prohibitions on placement outside the zone, cases of restrictions, a minimum regime, but also and ESPECIALLY cases of total freedom of placement outside CIMA zone, in other African markets and around the world. On analysis, this provision is important but insufficient to properly protect the Senegalese reinsurance market in this particular context of “local content” regarding hydrocarbon risks. Indeed, its effectiveness always assumes that this local market manages at least to increase its capacity in an extremely substantial way. Yet, “local content” in the hydrocarbons sector constitutes the greatest economic opportunity ever offered to the Insurance and Reinsurance industry in Senegal. If no initiative is taken to increase the capacity of the Senegalese market, we (insurers) will regret for decades a failure for which we would be jointly and severally responsible vis-à-vis future generations. Moreover, the exclusivism that prevails in the organization put in place by the insurance companies completely excluding the insurance brokerage companies (Insurers-Advice) in the process of reflection, assumption of responsibility and coverage of market risks only reinforces this lack of ambition for the Senegalese market. The current urgency would now be to seriously and without delay set out the axes of reflection in an inclusive manner and to put in place sustainable solutions in the interest of all the following parties: market players: Insurance companies, Reinsurers and insurance and reinsurance brokerage companies, the populations for the creation of jobs and a credible insurance industry in the interest of all policyholders. the State and the national economy for the local retention of important financial flows And finally the investors to respond to an excellent investment opportunity. These groups of investors could even include oil companies without reaching a level of involvement that would lead to their control of our reinsurance or insurance industry. According to the current process and the projections for oil and gas exploitation from 2022, now is the time or never to take all the appropriate legislative, regulatory, corporate and association provisions that will facilitate the achievement of the objectives of the law on the “local content” about the Insurance sector. I insist on this essential point and we should certainly not wait for the exploitation of the 1st barrels to try to establish a credible dynamism of reflection and establish an organization worthy of the name capable of taking charge of all questions relating to insurance and their consequences. Insurance professionals need to understand that the issues raised by “local content” are more complex than they appear. These remarks which precede are as much a personal awareness as a general alert intended for the world of Insurance and the State of Senegal. Given these elements, it would be essential to dwell on the following proposals, which, failing to provide a definitive solution to this fundamental question of "local content" in the insurance sector, would at least participate in posing the real debate . Some (proposals) would make it possible to solve basic difficulties related to legal and regulatory conditions, others (proposals) would make it possible to set up an organizational solution in the insurance industry for more effectiveness and efficiency with a view to promote the expected benefits in this sector. 1. WHAT ORGANIZATIONAL RESPONSES OF THE SENEGAL INSURANCE MARKET TOWARDS NEW OPPORTUNITIES? Insurance companies, in order to support their own joint interests, have certainly always shown good organizational capacity when it comes to dealing with certain situations or market difficulties since the creation of the Fédération des Sociétés Senegalese Insurance Company (FSSA) until its transfer to the Association of Insurers of Senegal (AAS). Technical commissions have also been set up as well as pools, the last of which was created under the name of "petro-gas pool". However, some black spots remain: The first is that relating to the commercial conflict and the friction recently noted between the said pool and a local company (AMSA). Second, the pool's ambitions for the market are limited. On the side of Insurers-Advisors or insurance brokerage companies, despite the creation of SACA which now takes the name of ASAC, the latter should in principle adapt to the very new situation in order to seriously carry their aspirations and those of the market directly linked to their activity by setting up the following structures: – a Co-brokerage pool in Insurance and Reinsurance operational as of now. Compulsory local co-brokerage would indeed constitute another excellent means of retaining a large part of the premiums (commissions) in the national economy to compensate for the weak capacity of the market. This part of the premium will be distributed equally between the member brokerage firms of said pool. For example, on the same risk that the Co-brokerage pool would be forced to place in optional reinsurance or in fronting outside the zone, 20% of the net premium on average will go to the Co-brokerage in insurance in terms of commission. Concerning co-brokerage in reinsurance on the same case, 32% on average of the share of premium to be ceded (after legal cessions) will be divided between the brokerage pool in its capacity as reinsurance broker and the pool of insurance companies. insurance considered as "the ceding company". Beyond the essential technical and commercial support that local brokers (national and subsidiaries) can provide to the market and the economy, these aforementioned elements are sufficient enough to justify their integration in the process of implementing "local content". . – a permanent secretariat or an executive management for the said pool. It will make it possible to manage the joint technical interests of all the brokerage companies duly approved by the State of Senegal which will naturally be interested in all matters arising from "local content" for the latter (Executive Management) to examine them. and deal with the pool of insurance companies. This technical placement work will concern both insurance coverage and optional reinsurance assignments. Nevertheless, given the fixed costs inherent in the missions assigned to this Executive Department and the limited resources available, its operation should only be effective after the completion of the first cases on which the insurance advisors are automatically interested by a legal obligation. or regulatory. It is a legally and materially possible approach. It would favor more balanced relations between Insurance Companies on the one hand and Brokerage Companies on the other with regard to the assumption of responsibility for business arising from “local content”. – a “Joint AD HOC Commission” could also be set up by mutual agreement between the two pools with a view to dealing with or finding solutions to the exceptional difficulties that could arise in the implementation of the law on the “content local" and the processing of complex files that require consultation between all the direct players in the business. It could be made up equally of representatives of the companies and those of the Insurer-Advisors. The number of representatives could be determined by mutual agreement. They will be chosen from the members of the respective pools -Finally, an Enlarged Mixed Commission could possibly involve the COS Pétro-gaz and the organizations of investors who would be interested in the creation of insurance companies and especially local reinsurance with the aim of considerably increasing the capacity of the Senegalese market, which is apparently too weak with regard to the dimension of the petro-gas risks and the premiums likely to be generated. Let us not forget that the insurance market should be the exact photograph of the level of economic development, the intervention of the State to facilitate the process being an essential condition. 2. WHAT LEGAL AND REGULATORY RESPONSES? This proposed organization would only be "perfect" if insurance professionals anticipate the regulatory measures for applying (decrees and orders) the law on "local content". This law is certainly salutary because it has the merit of expressing a real political will and of laying down a principle through its article 10 which makes insurance the only sector mentioned. This is a real wink from the state authorities and a great moral advantage for the insurance industry compared to other economic activities; but this legal provision naturally remains insufficient because it is general. From the point of view of the legal techniques of regulation, the decrees of application will have to determine the practical conditions under which our profession could profit from it effectively in its interest and in the interest of the State, the populations and the national economy. In other words, it is according to these measures of application that the vision of the insurers could be realized. In this regard, they should be able, together and of course within the framework of the organizations indicated above, to propose the following implementing measures (by decree): Promote a local insurance obligation for all insurance subscriptions concerning oil risks and gas companies, Establish a local co-brokerage obligation (therefore only for approved local brokers) on oil and gas risks and on all other Third Party insurance subscriptions at the request of Industries, operators and/or those who intervene in areas related to the chain of exploitation, production, security, marketing and distribution of oil and gas resources. At this level, a clarification is necessary: The subsidiaries of foreign brokerage companies will be part of this Co-brokerage managed by the executive secretariat or executive management of the pool of brokers. This would be the only way to oppose the system of piloting the underwriting of oil risks from abroad by international brokers directly chosen by the major oil and gas firms as part of their management programs. Plan provisions for priority investments in reinsurance with Senegalese reinsurers (others must be created) and Africans beyond the cases of legal transfers to SENRE and those provided for by the new article 308 of the CIMA code. Finally and above all, promote provisions providing frameworks and possibilities for subsequent consultation between all the players in the sector, the State and (its) National Insurance Department, investors and all entities interested in this sector. Indeed, given the magnitude of the risks and the importance of the financial flows that will be released into the economy by the insurance industry, this sector suddenly becomes the business of all citizens, whether insured or not. This last provision will be in line with the need to gradually restructure the insurance market to achieve a substantial increase in its capacity: Creation of new reinsurance companies, creation of other insurance companies with significant retention limits, etc. … Personally, I think that the political will is not lacking, at least that is the impression I had after the intervention of the President of the Republic during the workshop on local content organized on 2 July 2019 at the CICAD in Diamniadio. Moreover, on analysis, none of these proposals is contrary to Community law. Consequently, it is up to us, the insurers, to help him (President of the Republic) by providing him with our expertise, our objective advice for the success of “local content”. In the end, the final objective of these proposals would be the care and protection of the general interests of the profession and the national economy apart from the partisan interests of certain structures and isolated individuals. This is the approach that we believe to be morally correct, technically and legally valid and finally economically useful through its positive effects. These so-called repercussions could eventually be the subject of an in-depth analysis with the help of economists. We have glimpsed some aspects of it which always open the way to economic reflection. 3. WHAT POSITIVE IMPACTS FOR THE INSURANCE SECTOR AND THE NATIONAL ECONOMY? The measures and organizations proposed should in principle produce the positive effects set out below: Existence of new investment opportunities for investors, particularly in the insurance sector An insurance sector which will now be able to follow and take advantage of the evolution of the economic situation which will arise from this new oil and gas deal through consultations (between actors, State and investors). By an opposite effect, this sector will also be able to participate actively in the refinancing of the Senegalese economy. Raising the skills and business base of the companies involved (insurance companies and brokerage companies) operating in the Senegalese market Maintaining significant financial flows in the economy of Senegal, arising from risk insurance and reinsurance oil and gas companies. This maintenance will be done through tax obligations, investments by insurers in almost a good part of the socio-economic sector, self-investments in the same insurance sector, bank investments which will play on the good liquidity of these institutions, substantial subscriptions to government bonds in compliance with community insurance regulations and, last but not least, the creation of new jobs. The possibility for the 77 approved insurance companies to fully play their role and to have financial income allowing them to participate actively in the development of the economy, the creation of new jobs encouraged by the State and the development of other sectors through the investment operations that will be carried out. Moreover, the automatic participation of these brokers would make it possible to retain a good part of the premiums (30% on average) in the economy without this being able to depend on the level of market capacity. Finally, by its turnover, the good positioning of the Senegalese market in the CIMA zone I remain convinced that taking into account all of these parameters will undoubtedly be beneficial to all national interests without calling into question those foreign investors already established in our country.