Kinshasa, March 20, 2025 – Ten years after the liberalization of the insurance market in the Democratic Republic of Congo (DRC), significant challenges continue to plague the sector, raising concerns about regulatory enforcement, financial stability, and consumer protection.
At a ceremony marking the anniversary, Finance Minister Doudou Fwamba Likunde Li-Botayi and Alain Kaninda Ngalula, Director-General of the Insurance Regulation and Control Authority (ARCA), acknowledged key issues that have hindered the industry’s progress despite its expansion.
One of the major challenges highlighted was the fragmented enforcement of mandatory insurance policies. The finance minister admitted that the diversification of regulatory oversight bodies has led to inconsistencies in enforcing insurance obligations.
“This diversification of actors has made it difficult to ensure compliance with mandatory insurance policies,” said Fwamba Likunde Li-Botayi, stressing the need for a more streamlined and centralized regulatory framework.
Many businesses and individuals fail to subscribe to required insurance policies due to weak enforcement mechanisms. Auto liability insurance, construction coverage, and fire insurance remain legally mandatory, yet adherence rates are low, putting many at risk of financial ruin in the event of accidents or disasters.
Despite 355 million dollars in collected premiums, questions persist about the financial solvency of some insurance companies and their ability to honor claims. Complaints of delayed or denied payouts have become increasingly common, eroding public confidence in the sector.
ARCA’s Director-General, Alain Kaninda, emphasized the importance of financial prudence within insurance firms, noting that regulatory efforts have led to the adoption of 25 new rules and three circulars over the past decade. However, industry experts argue that mere regulations do not guarantee effective enforcement, as some companies continue to operate with insufficient reserves to cover major claims.
“Regulations are in place, but we must strengthen monitoring to ensure insurance firms can fulfill their financial obligations,” Kaninda admitted.
A decade after the market was liberalized, insurance penetration remains alarmingly low, with a large portion of the population either unaware of their rights as policyholders or skeptical about the reliability of insurance companies.
Many Congolese still perceive insurance as an unnecessary expense rather than a critical financial safeguard, a mindset fueled by previous cases of fraud, mismanagement, and policyholders struggling to receive payouts.
“We need to bridge the trust gap between insurers and the public,” Kaninda acknowledged, calling for more transparency in claims processing and stronger consumer education initiatives.
The government now plans to revise the Insurance Code, aiming to close loopholes and introduce new regulatory measures. Among the key areas of reform will be the rules governing insurance companies’ investments.
“There are still unresolved issues regarding how insurers manage policyholders’ funds and the types of investments permitted under the current framework,” said the finance minister.
While officials promise improvements, industry observers warn that without decisive action to address existing weaknesses, the Congolese insurance sector risks stagnation rather than progress.
As the government embarks on reforms, the central question remains: Will the next decade bring real change, or will the same issues continue to undermine confidence in the industry?
