SMICO Microfinance is accelerating its expansion into insurance as security conditions worsen in eastern Democratic Republic of Congo and banking operations remain shut in several rebel-held areas.

After launching its bancassurance activities in July 2025, the institution introduced a new range of products in March 2026, including auto insurance (SMICO Auto), travel insurance (SMICO Safari), business multi-risk coverage with fire protection, and health insurance. These add to its existing life insurance offering.

“More than a product launch, this marks a strategic shift in the Congolese financial sector,” SMICO said. “As risks linked to business activity and travel increase, insurance solutions have become essential.”

The move comes as SMICO’s financial performance has deteriorated amid the conflict in eastern DRC. At end-June 2025, the institution reported a loss of 1.29 billion Congolese francs. Net financial income fell 57% to 12.47 billion francs, while its 30-day portfolio at risk rose to 13.65%.

Operations have been disrupted by the conflict. Two major branches have been closed since AFC/M23 rebels seized Goma and Bukavu, while the Uvira branch is only partially operational. The downturn also reflects tighter financial conditions, as the central bank has kept banks closed in affected areas and blocked franc transfers to occupied zones, limiting access to liquidity.

In response, SMICO is seeking to diversify its sources of growth beyond lending. It formalized a bancassurance partnership with Rawsur Assurance in July 2025, with approval from the central bank (BCC) and insurance regulator ARCA. The agreement initially covered life, auto, residential fire and travel insurance. The institution now plans to integrate risk management more fully into its services, with products aimed at protecting clients’ business activities, travel and investments.

Rising Interest in Bancassurance

SMICO’s move into insurance builds on earlier initiatives. In 2021, it partnered with Rawsur Life to offer two life insurance products, Protection Crédit and Kimia Famille et Individuelle, designed to protect borrowers against death or disability. The objective was to reduce loan defaults linked to such events while providing basic protection for families.

The institution has also reshaped its geographic presence. It expanded its agent network in North Kivu to Beni and Butembo, where several public institutions relocated after the fall of Goma, allowing it to stay close to its client base as economic activity shifts.

Other financial groups are also targeting the insurance sector. The Rawji Group, which owns Rawbank and Rawsur, already illustrates increasing integration between banking and insurance. Equity Group, through Equity BCDC, has also signaled interest in the Congolese insurance market, which it views as one of the most promising in sub-Saharan Africa.

According to ARCA, the market grew from $66.75 million in 2018 to $352.15 million in 2024, a 428% increase since liberalization. The regulator is targeting a market exceeding $1 billion in the medium term. In this context, bancassurance is emerging as both a diversification tool for financial institutions and a way to manage rising risks in an increasingly uncertain economic and security environment.

Timothée Manoke