The CEO and Chairman of Alliance Assurances has proposed that mandatory insurance requirements be extended from Nat CAT to fire, liability and transport.
In a commentary on the LinkedIn account of Alliance Assurances, Mr Hassan Khelifati presents a vision for strengthening the insurance framework in Algeria and protecting investments.
He said that the current compulsory insurance system dates back to August 2003, when Algerian law mandated insurance coverage against natural disasters for individuals, households, industrialists, merchants, and professionals. The law was adopted after the Boumerdès earthquake in May 2003.
For businesses, compliance with this requirement is generally verified at present by the Tax Administration when annual tax returns are filed, noted Mr Khelifati. However, the Tax Administration’s primary mandate is limited to monitoring the tax compliance of financial documents; it does not include detailed verification of the validity of insurance policies, coverage periods, or declared values.
He added that some companies—particularly industrial and commercial ones—might understate the declared values of assets or fail to take out essential insurance such as fire or liability insurance, thereby exposing their property and shareholders' interests to significant risks.
Mr Khelifati proposed shifting the oversight function to statutory auditors who are to ensure compliance with coverage periods and declared values in mandatory insurance.
“We believe these reforms will strengthen social and economic cohesion in Algeria through better asset protection and by ensuring a rapid recovery following disasters,” he said.
Mr Khelifati’s proposals are made at a time when Algerian lawmakers are working on revising the insurance law.