Premiums in Algeria increased by 8.1% to DZD39.4bn ($331.5m) in the first quarter of 2018 compared to the corresponding quarter of 2017. Private insurers maintained a 27% share of the total insurance market.
In 1Q18, P&C insurance accounted for DZD35.3bn of premiums, or 89.9% of overall market share, reported Algeria Press Service citing data from the National Insurance Council. This reflected the pace of growth of 8.6%, compared to that for the corresponding quarter in 2017.
In the non-life sector, motor insurance commanded the most premiums that stood at DZD20.8bn in 1Q18, an increase of 4.7% over the corresponding quarter in 2017. This represented a market share of almost 59%.
Fire and other risk business saw premiums of DZD12bn, an increase of 17%. This class of business accounted for 34% of the non-life portfolio.
Claims rose by 8% to DZD15.2bn from January to March this year. Overall outstanding claims amounted to DZD79.4bn at 31 March 2018, 13.7% higher compared to the end of March 2017.
The 1Q18 figures showed a good trend and augured growth prospects higher than those of the last three years. A slowdown in insurance business was seen in 2015 and 2016 due to the impact of the fall in oil prices that had begun in mid-2014.
2018 holds improved prospects for insurance sector
The year 2018 is turning out to be one of improved results for insurers, according to Mr Brahim Djamel Kassali, president of the Algerian Union of Insurance and Reinsurance (UAR).
Mr Kassali, a keen observer of the economic scene, made the comments at a press conference held jointly with the secretary general of the National Insurance Council (CNA) Abdelhakim Benbouabdellah in early July, reported L’Expression DZ.
Mr Kassali pointed out that a 76% increase in the state’s budget in 2018, particularly aimed at boosting investment projects, could only have a positive impact on the economy and the insurance sector.
The road ahead for insurers remains long, but new technologies are opening up great prospects for the sector, he said. Digitisation undertaken by insurers should allow significant improvement in the quality of services and give a boost to turnover. M
DZD1 = $0.08