Algeria: Insurers contributing to revising insurance law
Source: Middle East Insurance Review | Apr 2017
Insurers have begun to submit proposals for the revision of the Insurance Act of 2006, according to Mr Abdelhakim Hadjou, CEO of Trust Algeria Assurances & Reassurances.
He explained the need to overhaul the insurance law and regulations, in an interview with Emerging Maghreb. He said that the law has not undergone major changes for more than 10 years.
He pointed out that, among other things, there is a need to upgrade e-governance systems in line with the increased development of information and communications technology.
He said that his company had recommended, through the Algerian Union of Insurance and Reinsurance Companies (UAR), some measures to improve the regulatory environment in the insurance sector. The changes will allow greater flexibility for product innovation and management systems and enable insurers to expand their coverage to meet the increasing needs of consumers.
Mr Hadjou said that Trust Algeria recommended the improvement of inter-company agreements to reduce the effects of competition. For example, the company supported the implementation of agreements on direct compensation to be paid to insureds and on settlement of claims cases between insurers in order to reduce payout waiting times and speed up the settlement of claims.
With regard to distribution of insurance products, current regulations provide for a significant diversification of channels, he said. Nevertheless, there is room to do more, such as making it easier to access the market as a general agent, in order to allow insurers to extend this type of distribution to cover the country and get closer to customers.
As for takaful, Mr Hadjou said that work on draft legislation is underway.
The launch of takaful products alongside the conventional insurance will provide more choices for consumers. He said that Trust Algeria favours takaful windows as insurers would not need to allocate additional capital for the creation of an independent Islamic insurance subsidiary.