Insurance laws DR Congo
The insurance sector in the Democratic Republic of Congo (DRC) has undergone significant changes in recent years, particularly with the liberalization of the market. Prior to 2015, the sector was a state monopoly.
Here is an overview of the insurance laws and regulatory framework in the DRC:
Regulatory Authority: The key institution overseeing the insurance and reinsurance market is the Autorité de Régulation et de Contrôle des Assurances (ARCA), or the Insurance Regulation and Control Authority. ARCA was established by the Insurance Code (Law No. 15/005 of March 17, 2015), which is the foundational legal text governing the sector. ARCA is responsible for licensing, supervising, and protecting the rights of policyholders.
Liberalization of the Market: The 2015 Insurance Code ended the state's monopoly on the insurance industry, opening the market to private insurance and reinsurance companies. This has led to the entry of new domestic and foreign players, increasing competition and the availability of insurance products.
Licensing and Operations: To operate legally in the DRC, an insurance company must be incorporated under Congolese law as a société anonyme (public limited company) and must obtain approval from ARCA. This approval is granted for specific lines of business, such as life insurance or fire, accident, and miscellaneous risks. Companies must meet strict requirements, including minimum share capital, and their executives must have specific qualifications and experience.
Compulsory Insurance: The DRC has several types of mandatory insurance, including:
Motor third-party liability insurance: This is compulsory for all vehicles.
Workers' compensation insurance: A state-run scheme is in place to provide this.
Aviation and marine liability insurance: Required for carriers.
Civil liability insurance for maritime, river, and lake carriers: Mandatory for operators of inland waterways.
Reinsurance: Reinsurance is a regulated activity in the DRC. The law includes provisions for reinsurance operations, and a new Reinsurance Facility has been established to combat the evasion of insurance premiums, especially in the oil, gas, and mining industries. This facility aims to build local capacity and negotiate risk transfers to international reinsurers.
Foreign Investment: The DRC allows for 100% foreign direct investment (FDI) in the insurance industry. This has been a key factor in attracting new companies to the market.
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