Algeria: Draft insurance law focuses on product diversification, takaful and digitalisation
Source: Middle East Insurance Review | Apr 2024
The preliminary draft law on insurance, which is currently being finalised, will make it possible to diversify insurance products and systems, with an emphasis on financial inclusion, in particular via takaful, management of new risks, while giving a large place to digitalisation, said National Insurance Council secretary-general Abdelhakim Benbouabdellah.
In particular, digitalisation is capable of providing market players with online modes of distribution and data to support decision-making, Mr Benbouabdellah told Algeria Press Service.
The proposed text, which will consolidate the legislative framework, replaces the four insurance laws currently in force, updates the current legislation and promotes governance in the sector. At present, the four texts are ordinances relating to compulsory motor insurance, export credit insurance, compulsory Nat CAT insurance and insurance overall.
The draft law, when passed, will also revamp the current insurance supervisory body in a response to calls by a number of market players for the establishment of an independent regulator for the industry, said Mr Benbouabdellah.
The draft law provides too for the enforcement of the obligations of insurance companies to policyholders.
Mr Benbouabdellah said, “It provides for a thorough verification of the origin of the funds used by these companies, thus strengthening financial transparency.” M