Insurance laws Mauritania
Mauritania's insurance legal framework is characterized by its Insurance Code of 1993, as amended in 2007, which serves as the primary legislation governing the sector. The country has been working on reforms to strengthen its financial sector, including insurance, and align it with international standards.
Here's a breakdown of key aspects of Mauritania's insurance laws:
1. Regulatory Authority:
The Insurance Control Directorate (DCA), established by Decree 349 of 2019, is the main regulatory body for the Mauritanian insurance industry. It is responsible for developing, implementing, and monitoring government policy in the insurance field. Prior to 2019, supervision of the insurance industry was under the Ministry of Commerce.
There have also been efforts to place insurance and reinsurance companies under the supervision of the Central Bank of Mauritania (CBM), with some reports indicating this was planned for 2021.
2. Key Legislation:
Insurance Code 1993 (as amended in 2007): This is the foundational law for insurance and reinsurance activities in Mauritania. It covers various aspects, including licensing, operation, and types of insurance.
Social Security Programs 2017: This law governs social security, which includes compulsory social security insurance.
Law No. 017-2019 on AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism): This law, which replaced an earlier one from 2005, applies to financial institutions, including insurance and reinsurance companies, requiring them to implement measures to prevent money laundering and terrorism financing.
3. Licensing and Operations:
A license is required to operate in the Mauritania insurance industry. Companies must obtain prior authorization from the relevant ministry (historically the Ministry of Commerce, now likely the DCA).
Insurers generally need to be established as joint-stock companies.
Composite insurance (offering both life and general insurance) is allowed in Mauritania.
4. Compulsory Insurance:
Several types of insurance are compulsory in Mauritania, including:
Motor Third-Party Liability Insurance (MTPL): Mandatory for vehicles.
Social Security Insurance: Covers illness, old age, disability, death (survivors), and accidents at work/occupational diseases.
Engineering Insurance: Often required for construction projects.
Property Insurance: Certain types may be compulsory.
Transit Insurance: For goods in transit.
Compulsory local insurance for oil & gas risks: This is a key focus to develop the local insurance sector and ensure benefits from the country's natural resources.
5. Foreign Participation and Non-Admitted Insurance:
100% Foreign Direct Investment (FDI) is permitted in the Mauritanian insurance industry.
Non-admitted insurance is generally prohibited with a few exceptions. This means that Mauritanian residents are typically required to procure insurance from insurers licensed within Mauritania, particularly for risks located in the country.
However, resident insurance and reinsurance companies can place reinsurance business with reinsurers not registered in Mauritania, provided certain criteria are met.
6. Other Notable Aspects:
Taxation: Tax is imposed on insurance premiums, in addition to corporate income tax, corporate capital gains tax, and value-added tax.
Bancassurance: Bancassurance (distribution of insurance products through banks) is generally not allowed.
Actuarial Services: There is no explicit requirement to appoint actuaries for insurance companies, though independent audits are required.
Premium Rate Approval: Premium rates often require approval from the regulatory authority.
Local Content Requirements: There's a strong emphasis on local content requirements, especially in the growing oil and gas sector, to ensure local insurance companies benefit from the risks associated with these activities. This includes mandatory transportation insurance for imported goods and ensuring insurance policies for risks located in Mauritania are subscribed locally.
Sharia Law Influence: As an Islamic country, Mauritania's legal system is an amalgamation of French Civil Law and Sharia Law. While the insurance code is based on civil law principles, cultural and religious factors can influence the acceptance and development of certain insurance products, particularly life insurance, where there can be some cultural resistance. Islamic insurance products (Takaful) are also offered.
Mauritania's insurance market is still developing, and the authorities are working on reforms to enable the sector to play a greater role in the country's economic development, particularly with the discovery of significant offshore gas fields.
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