A new regulation has come into effect, loosening entry requirements for those eyeing a position as a general insurance agent or broker.
Some insurance professionals believe that the reform could create 30,000 to 50,000 direct jobs in the insurance sector and between 100,000 and 200,000 indirect jobs in the next five years.
The decree, issued in June, covers matters including licensing, qualifications, remuneration and control of insurance intermediaries, report the local media.
The new decree amends a 1995 Executive Decree governing insurance intermediaries, by stipulating more relaxed educational qualifications and experience requirements.
Previously, a candidate for a job as an insurance intermediary needed to hold a postgraduate degree in a legal, economic, financial or commercial discipline. As a result, new companies, particularly privately held agencies or broking companies, faced a shortage of executives as few met the criteria.
Under the new regulations, a candidate has to meet at least one of the following conditions of professional competence to be a general insurance agent:
- Hold a third-year secondary level or a professional insurance certificate and has proven professional experience in a technical field in commercial insurance, or in other fields related to an insurance company or insurance intermediary, for a period of at least seven years;
- Hold a certificate as a senior cadre in insurance and have professional experience in a technical field in commercial insurance or in other similar fields with an insurance company or insurance intermediary for at least five years; or
- Hold a diploma from an institution of higher education (or at least a two-year bachelor’s degree) with professional experience in a technical field in commercial insurance, or in other similar fields with an insurance company or insurance intermediary for at least three years.
In addition, those who wish to have an insurance broker’s accreditation must demonstrate residence in Algeria and have an address at a commercial property either as owner or tenant.
Insurance intermediaries also have to provide a financial guarantee in the form of a deposit with the Treasury or a bank guarantee.
Mr Hassen Khelifati, CEO of Alliance Assurance, said that the changes will generate jobs for the young, promote the growth of a commercial insurance network and bring about a new dynamic to the insurance market. M