Togo Tightens Regulations on Insurance Brokerage Sector

Public finance

Wednesday, 25 June 2025 16:11

Togo Tightens Regulations on Insurance Brokerage Sector

(Togo First) - Togo's government is intensifying efforts to regulate and professionalize its insurance brokerage sector. A national training seminar, initiated by the National Directorate of Insurance under the Ministry of Economy and Finance, officially opened on Tuesday, June 24, 2025. The seminar aims to significantly increase professionalism within the sector.

This gathering signals an ambition to structurally reform the intermediation market. Officials recognize this market as a crucial, though still fragile, pillar of Togo's financial system.

The government is now emphasizing stricter regulatory oversight. For example, any approval for a brokerage company leader now requires a morality investigation. This requirement, introduced in 2024, seeks to rebuild trust and guarantee the integrity of industry participants.

Despite these efforts, several persistent challenges remain. One of the most alarming issues is an outstanding balance of unpaid premiums that exceeded CFA2.5 billion in 2024. This debt jeopardizes company solvency, destabilizes the value chain, and erodes the sector’s credibility.

Koffi Elom Masé, Director of Insurance, stated, "Intermediaries must be guarantors of trust, transparency, and rigor."

Inspections have revealed various flaws, including irregularities in regulatory reports, governance shortcomings, and a limited understanding of CIMA standards, which govern the industry.

In light of these findings, the sector faces calls for reorganization. The Council of Insurers of Togo (CAT), however, points to encouraging progress. The market expanded from CFA62 billion in 2019 to CFA98 billion in 2024, marking a 57% increase. This growth underscores the market's strong potential, provided that fundamental improvements in governance and professionalism are made.

Ayi Renaud Dossavi

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