Algeria: Finance minister urges insurers to diversify products
Source: Middle East Insurance Review | Dec 2018
Algeria’s finance minister Abderrahmane Raouya is urging insurers in the country to diversify their products and to explore other areas in which to expand their business, in light of the low penetration rate of the domestic insurance market.
“The national insurance market has a penetration rate of 1%, which of course, remains low compared to those of neighbouring countries, but it indicates that there is a large margin for growth in insurance business,” said the minister, according to a report by Algeria Press Service.
Mr Raouya, speaking at the inaugural Algerian Insurance Multaka organised recently in Algiers by the Union of Insurers and Reinsurers (UAR) and Central Reinsurance Company (CCR), pointed out that market segments that are underdeveloped include life, agricultural and natural disaster insurance.
He said the development and diversification of the insurance market remain dependent on steady improvement in the quality of services provided to policyholders and continued efforts to modernise the sector.
To this end, the use of new information and communication technologies, in an increasingly demanding and competitive environment, favours the development of activities of insurance companies, and constitutes a “powerful lever” to enhance the quality of customer services and stimulate the market with innovative products, he said.
He noted that despite the relatively difficult economic climate, the Algerian insurance market posted a growth rate of 3% in 2017, compared to 2016, better than the 1.3% growth rate posted in 2016 compared to 2015. M
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