Insurance laws Congo
When discussing "Congo," it's important to distinguish between the two countries: the Republic of the Congo (often called Congo-Brazzaville) and the Democratic Republic of the Congo (often called Congo-Kinshasa or DRC). They have distinct legal and regulatory frameworks.
Democratic Republic of the Congo (DRC)
The insurance sector in the Democratic Republic of the Congo has recently undergone a significant transformation. Historically a state-monopolized market, it is now being liberalized.
Regulatory Authority: The Autorité de Régulation et de Contrôle des Assurances (ARCA) is the national regulatory and supervisory body for the insurance sector. It was established following the privatization of the market.
Legal Framework: The main law is Act No. 15/005 of March 17, 2015, which aimed to liberalize the insurance sector and attract private companies.
Company Requirements:
To operate legally, a company must be incorporated under Congolese law as a société anonyme.
Companies must receive approval from ARCA for one or more specific lines of business (e.g., life insurance, fire, accident, and miscellaneous risks).
There are minimum share capital requirements, which vary by the type of business. For life insurance or general insurance, the minimum is 10 billion Congolese francs.
Managers must meet strict criteria of competence and experience, typically requiring a university degree and at least 10 years of experience in a relevant position.
Non-Admitted Insurance: The placement of non-admitted insurance is generally not permitted in the DRC. This means that risks located within the country must be insured by companies licensed to operate there.
Mandatory Insurance: While the market is still developing, certain types of insurance are compulsory, such as motor third-party liability and specific types of professional and business-related liability insurance.
Republic of the Congo (Congo-Brazzaville)
The Republic of the Congo is a member of the Interafrican Conference of Insurance Markets (CIMA), a regional organization that standardizes insurance laws across its member states.
Regulatory Authority: The insurance sector is regulated by the National Insurance Directorates (Directions Nationales des Assurances - DNA), which operates under the country's Ministry of Finance. It works in conjunction with CIMA's regional supervisory body, the Regional Insurance Control Commission (CRCA).
Legal Framework: The primary legal document is the CIMA Code, which governs all aspects of the insurance business in the Republic of the Congo and other CIMA member countries. This code provides a harmonized legal framework for the industry.
Company Requirements:
Insurers must obtain a license from the DNA to operate in the country.
Companies from other CIMA member states may be permitted to operate without a separate license.
The CIMA Code sets forth rules regarding minimum capital, solvency, and investment requirements.
Mandatory Insurance: The CIMA Code mandates several types of insurance, including:
Motor third-party liability insurance.
Aviation third-party liability insurance.
Marine third-party liability insurance.
Professional indemnity insurance for insurance intermediaries.
Social security insurance.
Non-Admitted Insurance: The CIMA Code generally prohibits non-admitted insurance, with some specific exceptions.
Composite Insurance: Composite insurance (a single company offering both life and non-life products) is not permitted under the CIMA Code.
RELATED Blog
0 comments