The introduction of the Insurance Code ten years ago and its implementation since 2019 have enabled the authorities to collect more than USD 355 million from the sector. This code has established the liberalization of the insurance market in the DRC.
On the occasion of the celebration of the 10th anniversary of the Insurance Code in Kinshasa, Doudou Fwamba, Minister of Finance, welcomed the results achieved, highlighting the collection of USD 355 million in premiums. This performance was boosted by a major tax change with the introduction of value-added tax (VAT) in the insurance sector, which has helped to increase the mobilization of resources.
Satisfaction and room for improvement
The government is satisfied with the progress made in mobilizing revenue, with 355 million premiums collected,’ said Mr Fwamba. A change in the tax system has contributed to this mobilization through the introduction of value-added tax for insurance companies’.
At the same event, the authorities revealed that the DRC has 12 companies operating in the insurance sector, including 10 specializing in insurance, one in reinsurance and others in brokerage.
‘As of 2019, our market will be worth USD 70 million, but essentially with one key insurance product, motor liability. By 2024, this market will have grown to more than USD 350 million, with the addition of credit, fire and health insurance,’ said Alain Kaninda, Director General of the DRC’s Insurance Regulation and Supervision Authority, at a press conference.
‘In ten years, it’s a real revolution. If we are allowed to sell insurance products directly, by telephone for example, we will be able to reach every nook and cranny in the country’, suggested Vincent Mwepu, Chairman of the Association des Sociétés d’Assurances (ASAR).
Strengthening compulsory supervision
The regularisation of the sector, introduced by the Insurance Code, has several strategic objectives. The DRC wants to diversify the supply of credit, open up the market to free competition, create jobs and mobilise financing capable of supporting its economic growth.
The Ministry of Finance praised the work of ARCA, the technical body of the Ministry of Finance responsible for implementing the Insurance Code.
‘In the face of persistent challenges, it has announced a revision of the Insurance Code to strengthen compulsory insurance supervision and meet the challenges facing the sector, particularly with regard to regulated investments. This reform will introduce innovations and fill identified gaps’; his ministry announced on X.
Mr Fwamba also reviewed certain types of insurance made compulsory by the Code. In particular, he mentioned motor third-party liability, worksite insurance and fire insurance.
M&B
