Africa News - Algeria: Motor business profitable for insurers
Source: Middle East Insurance Review | May 2016
Auto insurance has remained highly profitable for Algerian insurers, with total compensation amounting to DZD39.7 billion (US$367.5 million) compared to premiums of DZD66.2 billion in 2015, according to the National Insurance Council.
Motor insurance is also the segment that generates the most revenue for insurance companies in Algeria. It accounted for 56% of total non-life premiums in the market, which amounted to DZD118.1 billion, reported the local media. Motor premiums increased by 1.3% last year compared to overall non-life insurance premium growth of 0.2%.
The auto third-party liability insurance business collected premiums of DZD11.1 billion last year, or 16.8% of total motor premiums. The non-compulsory auto insurance segment accounted for 83.2% of total motor premiums, collecting DZD55.11 billion. Non-compulsory auto insurance generated the most profit for insurers.
However, not everything is smooth sailing in auto insurance as more policyholders are taking their grievances against insurers to court, with compensation cases sometimes dragging on for several years.
The Algerian Union of Insurers and Reinsurers said there are cases awaiting settlement that date back to 2010. A quarter of all auto claims take more than a year to be settled.
DZD100 = US$0.93