Baobab RDC, a microfinance institution operating in the Democratic Republic of Congo, signed a memorandum of understanding with insurer Rawsur Life on May 26, 2026, to integrate death and permanent disability coverage into the loans it extends to clients.

The arrangement is designed to mitigate the financial impact of death or permanent disability on loan repayment. In the event of a borrower's death or permanent disability, the insurance can cover the outstanding loan balance, subject to the terms of the contract.

For Baobab RDC, the initiative serves a dual purpose: protecting families from being left with the borrower's debt in the event of a claim, and reducing the credit risk associated with its loan portfolio.

The partnership comes as the institution seeks tighter control over portfolio quality. In its Pillar III report for the first half of 2025, Baobab RDC identified credit risk as its primary risk exposure. The document also noted a rise in delinquent loans, with the share of the portfolio where repayments were more than 30 days overdue climbing from 5.7% at end-2024 to 11.82% at end-June 2025.

The integration of death and disability insurance is being presented as an additional tool to protect borrowers while strengthening loan security.

According to Baobab RDC Managing Director Sandrine Maïndombe, the new offering reflects the institution's commitment to supporting clients beyond providing credit. She said the insurance would strengthen protection for borrowers and their families against the financial consequences of death or permanent disability.

The coverage is available to individuals and businesses applying for a loan from Baobab RDC who meet the institution's eligibility criteria. It will be offered across all Baobab RDC branches in Kinshasa.

Growth in life insurance

The partnership also provides for swift claims processing. In the event of a borrower's death, the outstanding loan balance can be settled within three to ten days of submission of the required documents, including a death certificate. In cases of permanent disability certified by a physician or an accredited healthcare facility, the remaining debt will be covered in accordance with the terms of the insurance contract.

Rawsur Life Managing Director Hugues Toto said the collaboration is part of the insurer's strategy to develop tailored insurance solutions for financial institutions and their clients. He noted that this type of coverage has already been deployed with several microfinance institutions in the DRC for a number of years.

The partnership also reflects the gradual development of bancassurance and micro-insurance in the Congolese market. In a microfinance sector exposed to repayment defaults linked to borrowers' personal circumstances, the integration of insurance products serves both as a social protection mechanism and a risk-mitigation tool for lenders.

The Congolese life insurance market remains relatively small but is expanding. According to the 2024 annual report of the insurance regulatory authority ARCA, premiums written in the life segment totalled $35.09 million in 2024.

Within that segment, Rawsur Life has consolidated its position as market leader. Between 2022 and 2024, the company accounted for 61.85% of the life insurance market in the DRC. Over the same period, its revenue rose from $6.83 million to $21.70 million, one of the strongest growth rates recorded in the sector.

Ronsard Luabeya