Political violence insurance premiums in the Democratic Republic of the Congo surged by as much as ten times last year as conflict in the east escalated, lifting insurer revenue while sharply increasing costs for copper and cobalt miners, insurance executives told Reuters.
The spike followed a major offensive by Rwandan-backed AFC/M23 rebels, who overran the eastern city of Goma in January 2025.
The advance marked the group’s largest territorial gains to date and triggered widespread business shutdowns. Thousands were killed, hundreds of thousands were displaced. Commercial risk changed overnight.
Congo’s second-largest insurer, SFA, derives roughly 25% of its book from mining and insures about half of the country’s operators. Valery Safarian, adviser to SFA’s board, said political violence premiums jumped five to ten times immediately after the events. Rates eased later as conditions stabilised and reinsurance capacity returned.
The pricing shock doubled SFA’s political violence portfolio within a year, from about $3 mn to $6 mn. Xavier Denys, SFA’s general manager, said demand arrived fast.
Companies rushed to renew cover or secure new policies as risk perceptions reset.
Mining exposure drove much of the urgency. Congo supplies more than 70% of global cobalt output and holds large reserves of copper, lithium, coltan, and gold. Major operators include CMOC, Glencore, Eurasian Resources Group, and Chemaf.
Safarian said mines largely avoided direct damage from the rebel advance. Losses fell heavier on retail and industrial clients operating closer to population centers.
As premiums surged, new reinsurers entered the Congolese market. Additional capacity helped pull pricing closer to pre-crisis levels by January.
Even so, Denys said industrial risks remain dominant. Property damage, pit collapse, machinery failure, and tailings dam exposure continue to outweigh pure political violence loss scenarios.
According to Beinsure, rapid capacity inflows remain a common pattern in frontier markets following political shocks.
The broader insurance market continues to expand.
Since Congo liberalised its insurance sector in 2018, non-life premiums have grown fivefold, rising from $67 mn to about $350 mn in 2025. SFA’s turnover climbed from $73 mn in 2024 to more than $81 mn last year.
With technical capacity improving locally, SFA plans to push beyond national borders. Safarian said the insurer aims to position the DRC as a regional insurance hub, exporting underwriting and claims expertise into neighboring markets as confidence and scale continue to build.
