The insurance sector in Algeria is forecast to grow by 5-6% this year, according to the Algerian Union of Insurance and Reinsurance Companies (UAR).
Mr Brahim Djamel Kessali, UAR president, said the insurance sector would see a real recovery on the back of “the ramping up of assembly plants in Algeria”, to which are added efforts made by the insurance sector “in relation to simple risks”, as well as economic growth of the country. Motor business would see substantial growth too.
He also cited the introduction by insurers of multi-risk home cover and natural disaster insurance as a growth driver.
This year’s growth forecast is in contrast to last year’s flat growth, with premiums reaching DZD134.5bn ($1.1bn), according to the National Insurance Council (CNA).
Separately, Mr Hassen Khelifati, CEO of Alliance Insurance, said that many companies are starting to engage in risk consulting and analysis. He said the main business risks include those related to fire, storage of materials, and natural disasters and perils.
The growth of the insurance industry requires a new wave of reforms, including the establishment of a more independent regulatory authority, more equipped to provide support for the development of the sector, he said in an interview with El Moudjahid. There is also a need for flexibility and strategic vision to enable participation in the economic boom.
Another hurdle to the development of the insurance sector is the absence of a dynamic financial market, according to Mr Khelifati. He added that apart from traditional insurance products that include credit, travel and some group insurance products, the insurance sector has not changed because it lacks savings products. M
DZD100 = $0.85