Algeria: SAA and CASH sign sector's first cooperation pact
Source: Middle East Insurance Review | Mar 2017
Two of the largest insurers in Algeria – Algerian Insurance Company (SAA) and Algerian Hydrocarbon Insurance Company (CASH) – have signed an MoU on cooperation and healthy competition. The agreement is the first of its kind in Algeria.
Mr Omar Akchiche, adviser to SAA’s CEO, said that the agreement deals exclusively with large corporate risks, and aims to introduce “more ethics in the insurance sector to ensure that there is respect between insurance companies themselves, and also towards their clients”, reported Financial Afrik.
The agreement is based on three essential elements. The first is to ensure that the financial situation of each major client in respect of its insurer is cleared when it wishes to change insurers. In cases when certain industrial risks require the insured to pay for high-value insurance policies, the insurer can give the insured a timetable enabling them to pay premiums in instalments.
Secondly, with this agreement, each of the two insurers undertakes not to price the insurance policy at a premium lower than that proposed by the other for the risks undertaken.
Finally, both companies agree to use domestic reinsurance capacity when dealing with large-scale business, avoiding the need to cede to international reinsurers. This includes co-insurance for large risks.