Africa - Tunisia: Third-party motor hikes to continue till 2020
Source: Middle East Insurance Review | Feb 2016
Insurers in Tunisia will be increasing third-party motor liability premium rates progressively until 2020, said Mr Ahmed Hadrouk, Director General of the market regulator, the General Insurance Committee (CGA).
As a start, the insurers have increased premiums by 10% for third-party motor liability insurance for private cars and commercial vehicles used in the transport of goods, farm vehicles and motorcycles. The new rates took effect from 1 January.
The increases are part of an insurance sector reform plan. In the automotive segment, losses are rising steadily and have reached 280%, Mr Hadrouk told the Tunisian News Agency.
The plan is being implemented on the basis of two studies prepared by the CGA, the first of which focused on the development of a specific programme for the insurance sector for the next five years, while the second focused on car insurance and the adoption of new rates to guarantee the financial stability of the industry. Both studies showed that compulsory liability insurance suffered from a deficit that needs to be filled through progressive increases in the tariffs.
Meanwhile, the CGA is working on establishing a risk management centre which is expected to start operations from the second half of 2016. The first phase of this plan will be devoted to the establishment of a database to activate the bonus-malus system for motor insurance, said Mr Hadrouk.
He also stressed the need to revive a traffic accident prevention fund, financed by insurance companies. The fund was created in 2005 but suspended in 2010.