Congo mining insurance costs surge sharply
Insurance costs for political risks in the Democratic Republic of Congo’s mining sector surged dramatically last year, with premiums spiking five to ten times, according to Valéry Safarian, managing partner at Triangle Partners and an adviser to the board of SFA Congo, the republic’s second-largest insurer. These sharp increases transformed insurance from a standard expense into a critical financial factor for businesses operating amid the country’s worsening security challenges, including conflict with the M23 rebels in the east and anti-government protests in the capital.
SFA Congo saw its political violence insurance portfolio double to $6 million in 2025, while overall turnover rose from $73 million in 2024 to over $81 million. Mining firms including CMOC Group, Glencore, Eurasian Resources, and Chemaf were among those affected.
The Congolese situation does not reflect a continent-wide insurance price surge. Marsh’s second-quarter Global Insurance Market Index shows declining rates across much of Africa’s commercial insurance sector, with a 16% drop in the India, Middle East, and Africa region. Property insurance rates fell 19%, while political violence premiums stabilized as new market participants increased available capacity.
Rising Premiums Not Only Concern
Lesley Ndlovu, CEO of AfrexInsure, emphasizes that the core issue extends beyond rising premiums. The greater concern involves whether investors can obtain adequate coverage limits, suitable deductible levels, and protection matching both the project’s value and duration. When sufficient insurance cannot be secured, sponsors may need to assume more risk or allocate additional capital.
Safarian argues the Congo case demonstrates why no fixed premium level determines investment viability. The assessment depends on projected returns, financial stability, and—most critically—how much risk can be transferred to insurers and reinsurers. “Capacity can matter more than price,” he said. An investor may accept a higher premium if adequate protection is available.
Difficulties arise when coverage limits shrink, deductibles increase, or exclusions leave unacceptable risks. The tipping point comes when that combination makes the expected return unattractive or when available coverage no longer meets lenders’ requirements, Safarian said. At that stage, insurance constraints can become financing constraints.
Insurance Market Trends Shift
Political violence premiums spiked when eastern DRC conflicts intensified in 2025, while SFA’s political violence portfolio expanded. Overall non-life insurance premiums in Congo reached approximately $350 million last year, up from $67 million in 2018, when the country liberalized its insurance market.
For long-term investors committing funds for decades, the question becomes whether adequate protection will remain available at renewal. Continuity of capacity matters as much as short-term price relief, Safarian said. This concern is especially relevant for mining, energy, infrastructure, and trade projects, where financing agreements often require sustained insurance protections throughout the investment period.
Global commercial insurance rates fell 6% in the second quarter, according to Marsh. Property insurance rates fell 12%. The firm attributes this broader market softening to abundant capacity, strong insurer competition, surplus capital, lower reinsurance costs, and strong insurer profitability. Insurers are competing not only on price but also through “broader coverage, expanded policy terms, and lower deductibles,” said John Donnelly, president of Global Placement at Marsh. That matters for African investors, because cheaper premiums are only one component of the risk-transfer equation.
African Credit Insurance Demand
Demand for African credit and political risk insurance “often outstrips supply on an annualized basis,” said Benjamin Mugisha, chief underwriting officer at African Trade and Investment Development Insurance (ATIDI), a multilateral investment and credit insurer. Mugisha identified Côte d’Ivoire, Egypt, and South Africa as markets with particularly strong demand, driven by foreign direct investment (FDI), infrastructure financing, and lending activity. Coverage for political violence, war, specialized mining risks, and complex infrastructure projects often encounters limited capacity, higher deductibles, reduced coverage limits, and more restrictive terms. For investors, the decision increasingly hinges on capacity, coverage continuity, and policy terms rather than just premium costs.
Ndlovu advises that insurers should participate in project planning before financing packages are finalized. Project sponsors can mitigate underlying risks through engineering solutions, resilience measures, security protocols, contractual risk allocation, and project redesign. Insurance, reinsurance, guarantees, and political risk instruments can then address any remaining exposures.
For investors, the analysis extends beyond premium costs to include how much risk remains on the project’s balance sheet, the capital required to cover that exposure, and whether lenders’ insurance requirements can be satisfied. The Congolese experience demonstrates the potential scale of these challenges, with political violence premiums surging due to M23 rebel conflicts and anti-government demonstrations. As security conditions improved and insurance capacity returned, premiums began stabilizing, with non-life insurance premiums reaching approximately $350 million last year.
