Lack of Awareness and Weak Remuneration of Insurance Brokerage in the Democratic Republic of Congo: Possible Solutions.

Louison Ekofo

SUMMARY

This paper sets out two major difficulties that weaken the activity of insurance brokerage in the Democratic Republic of Congo (DRC), namely the lack of awareness of brokerage, revealed by current practices, and the constraints on the broker's level of remuneration, compared with practice in other countries, particularly in Africa. After a brief explanation of brokerage, the paper highlights the relative place of brokerage in the DRC through figures, the practices that reflect this lack of awareness, and the constraints on brokers' remuneration. Finally, possible solutions are proposed to enable the rapid development of this highly important and crucial activity for the flourishing of the Congolese insurance market.

Keywords: Insurance, Insurance broker, DRC
JEL codes: G22, G28

ABSTRACT

This paper deals with two major issues that penalize the activity of insurance brokerage in the Democratic Republic of Congo (DRC), namely, the lack of knowledge of brokerage, revealed by current practices, and the constrained level of brokers revenues, in comparison to what happens in other countries, particularly in Africa. After a brief lesson on brokerage, the paper highlights the relative place of brokerage in the DRC through figures, the practices – reflecting the invoked lack of knowledge – and the constraints on the remuneration of brokers. Then, some solutions are proposed to allow the rapid development of this highly important and crucial activity for the blossoming of the Congolese insurance market.

Key words : Insurance, Insurance broker, DRC
JEL Codes : G22, G28