Judith Suminwa promises to boost the growing insurance sector
The insurance market in the Democratic Republic of Congo (DRC) has witnessed remarkable growth over the past five years since its liberalization in 2015.
From a turnover of USD 70 million in 2018, the sector surged to USD 221 million in 2021 and further to over USD 268 million in 2022, marking a significant 270% increase in four years. By the end of 2023, the turnover had reached USD 320 million.
Prime Minister Judith Suminwa Tuluka highlighted these achievements during her address to national elected officials on June 11, 2024, as she presented her government’s five-year program.
She emphasized the importance of financial sector reforms, particularly in liberalizing the insurance sector to enhance its role as an institutional investor, protect investments, improve the business climate, and ensure social protection for citizens and their assets.
Suminwa pledged active government support for the Insurance Regulatory and Control Authority (ARCA) to fulfill its mandates effectively.
The number of insurance operators has grown from 4 in 2019 to 10 companies by 2021, complemented by 39 brokers, totaling 39 operators. Non-life insurance dominates the market, contributing to job creation with 248 positions filled by national workers in 2021.
The sector’s liberalization ended the monopoly previously held by the National Insurance Company (SONAS) since 1968. Despite these advancements, the insurance penetration rate remains modest, at 0.97% in 2018, compared to 1.24% in Gabon and 2.4% in Kenya.
ARCA is focused on fostering a robust and inclusive market that adheres to international standards. Challenges persist, including regulatory compliance, product suitability, and prompt service payments by insurers.
The government continues to implement macroeconomic reforms to stimulate private investment and enhance price regulations for consumer goods and petroleum products, aiming to sustain growth and stability in the DRC’s insurance sector.
