Congo: Insurance companies should capitalize on other countries’ experience to grow, a study reveals
In a recent study on the development of inclusive assurance in the Democratic Republic of Congo, Microsave suggests that the assurance sector will grow rapidly if the country capitalizes on other country experiences.
“The experience in other African countries suggests that within 10 years, millions of Congolese would subscribe to products created in accordance to their needs.This supposes that insurance providers would commit to inclusive insurance, launching C.A.U.S.E (Comprehensive, Affordable, Useful, Simple and Efficient) product, initiating efficient business partnerships, make use of new technologies and develop innovative distribution approaches”, the study revealed.
The study commissioned by the NGO ELAN RDC, suggests that despite a difficult environment in DR Congo, there are opportunities for the development of microinsurance - a new law was adopted in 2016 which liberalized the sector opening it to new markets.
However, apart from sensitizing residents, insurance companies should continue their lobbying of authorities to have more friendly regulations. The minimum required capital of $10 million for insurance companies and $3 million for mutual funds could be a handicap.
Source: Ecofin Agency