Africa - Algeria: Insurance association seeking auto premium increases
Source: Middle East Insurance Review | Jun 2016
The Algerian Union of Insurance and Reinsurance Companies (UAR) is working to increase motor premiums in the country with effect from the beginning of this month.
As part of the process, UAR has submitted details to the National Institute of Mathematics of the University of Science and Technology for the latter to look into the size of the proposed increases. The details will then be submitted to the Ministry of Finance, according to local media reports.
Mr Hassan Khelifati, UAR Vice President, said that insurers find the business difficult and are forced to ask the government to allow premium increases, because of the large number of traffic accidents in the country that had almost doubled in the past year and increases by an average of 40% in the costs of vehicles and spare parts.
He said that the National Institute of Mathematics is considering premium increases by classifying car owners according to their driving record. He said that a database of policyholders and accidents will be fully operational soon and that the data would be shared among insurance companies.