The Congolese insurance market

Closed to foreign investors, insurance in the Democratic Republic of Congo has been, for several decades, monopolized by Société Nationale d’Assurances (SONAS).

Since its establishment in 1968, this unique State-run stakeholder has been the only one authorized to underwrite risks throughout the country. Over the years, the volume of premiums has only decreased, before bouncing back at 70 million USD in 2018.

With the promulgation of Law 005/2015 on the Insurance Code, the market is now open to other national and foreign players.

The opening of the market has materialized in 2016 by the Insurance Regulatory and Control Authority (ARCA), a regulatory body dedicated to steering the revival of the Congolese market.

No less than 16 insurers announced, in 2017, their intention to get established in Congo.

In April 2019, ARCA granted licenses to three non-life insurance companies and one life company, namely:

• Rawsur Life and Rawsur RDC, both subsidiaries of the Congolese bank Rawbank
• Activa Assurance RDC, subsidiary of the Cameroonian group ACTIVA
• Société Financière d’Assurance du Congo (SFA)

In March 2020, the regulator has issued three new authorizations to:

• SUNU Assurances IARD
• Mayfair Insurance Congo
• Global Pionner Assurance (GPA)

By 30 June 2020, the Congolese market comprises eight insurance companies, including SONAS, which has been granted a period of adaptation to the new regulatory environment by ARCA.

The challenges of the Congolese market

The main purpose of the 2015 Insurance Code is to put an end to a long monopoly period in favor of SONAS. Insurance was then governed by disparate and totally obsolete texts.

This legislation prompted the evasion of premiums abroad with a non-insurance trend that was worsening year after year.

As a result of this situation, the insurance penetration rate in the DRC is one of the lowest in Africa. At 0.97% in 2018, it is far behind those recorded by its neighbors: 1.24% in Gabon and 2.4% in Kenya.

The new law advocates:

• The opening of the market to free competition,
• The establishment of a single regulator for all operators in the sector,
• The introduction of a range of compulsory insurance (motor third party liability, airline liability, fire, construction, import faculties),
• Better recourse management between insurers,
• The establishment of a system of compensation for personal injury,
• The creation of a guarantee fund for victims of road accidents caused by uninsured individuals.

For a country of nearly 2.5 million km2 and a population of 85 million, the market constitutes an enormous reservoir for insurance premiums. While the current turnover does not exceed 100 million USD, the real potential is estimated at 800 million USD in the short term and between 3 and 5 billion USD in the long term.

Congolese insurance market*: Information sheet of companies

Société Financière d’Assurance (SFA Congo)

Activa Assurances RDC

Rawsur SA

Rawsur Life

SUNU Assurances RDC

Mayfair Insurance Congo

SONAS

* Global Pionner Assurance (GPA) data are unavailable

Exchange rate on 31/12/2019 : 1 CDF = 0.00059 USD