Mamadou Moustapha Bâ chaired, last Thursday, the symposium on “the contribution of insurance in the national economy”, one of the forums of the “Assises de l’entreprise 2023” organized by the National Council of Employers (Cnp) and which ended on Friday in Dakar. The Minister of Finance and Budget explained, last Thursday, “the weakness […]
Mamadou Moustapha Bâ chaired, last Thursday, the symposium on “the contribution of insurance in the national economy”, one of the forums of the “Assises de l’entreprise 2023” organized by the National Council of Employers (Cnp) and which ended on Friday in Dakar.
The Minister of Finance and Budget explained, last Thursday, “the relative weakness” of the investment of insurers in the national economy by “the weak expansion of life insurance”, which is characterized by a presence on long-term investments, unlike non-life insurance whose collected resources constitute means of short-term financing, with a very rapid disbursement frequency to cover the commitments entered into. Figures corroborate this situation: with 37% market share in the national insurance business, life insurance will however concentrate 63% of investments in 2021. According to Amadou Moustapha Bâ, “the financing capacity of the economy by the sector will therefore be all the more important as the branch of life insurance, a collector of long-term resources, will be developed like modern markets”. By chairing this panel, he gave a broad overview of the insurance sector, its place and its savings potential. Alongside the traditional tools (taxes and duties), “the mobilization of national savings constitutes an important lever on which we will have to rely more for the financing of our economy. And it is at this level that the insurance sector, in its role of collecting savings, is eagerly awaited”, indicated the Minister. An indication of this low involvement is that, for example, in terms of participation in State debt, the amount of sector investments in 2021 represents only 0.6% of total debt and 2. 39% of the State’s internal debt. During his speech, he recalled the function of facilitator of the sector in the realization of economic projects through the guarantees given to banks in the granting of credits or the conditionalities of insurance in the financing of major works of the State. He did not limit himself to noting this low participation, but he gave explanations for it, in an unfavorable international context, marked by multiple exogenous shocks, with a State obliged to seek more local resources to finance development projects. . The insurance penetration rate is 1.47% in Senegal in 2021, against an African average of 2.70% and a global average of 7.00%, said Mamadou Moustapha Bâ, which testifies, according to him , that “a lot of progress still remains to be made” despite the constant progression of this sector’s contribution to GDP, as it was only 1.15% in 2017. However, the sector is dynamic because “the services paid by the insurance in 2021 amounted to 114 billion FCfa, an increase of 24 billion FCfa compared to the previous year”. In addition, as of December 31, 2021, the stock of investments made by the sector in the economy stood at CFAF 443 billion, up 1.8% compared to 2020.
Samboudian CHAMBER
Source : https://lesoleil.sn/investissements-des-assurances…
