Agricultural insurance is emerging as an engine of growth for the national market, promoting diversification, investments, and essential coverage against climate risks.
In an analysis, Mr Cherif Benhabiles, Director General of the National Agricultural Mutual Insurance Fund (CNMA), described the agricultural insurance branch as a strategic lever for the insurance market, which is still largely reliant on motor insurance, the media outlet Young Independent reported.
The potential of the agricultural insurance branch also lies in its ability to extend coverage across the entire value chain, from raw production to the most critical logistics infrastructure. At the same time, it offers particularly fertile ground for innovation, driven by the emergence of parametric and index-based insurance.
Climate resilience mechanisms, such as the Agricultural Climate Insurance Scheme (DACA) managed by CNMA, play a central role in supporting national production, particularly for the strategic cereal sector.
The structural modernisation is complemented by digital transformation and microinsurance, essential tools for expanding access to coverage for agricultural populations removed from traditional financial channels. Technological solutions simplify claims processing and significantly reduce payment times, thereby strengthening policyholder confidence.
Despite the encouraging prospects, the Algerian market lags in terms of maturity, hampered by a penetration rate of less than 1% of GDP, a delay in the digitalisation of processes, and a still limited InsurTech ecosystem.
To overcome these obstacles and foster healthy competition, Mr Benhablies advocates an overhaul of the regulatory framework, including a revision of the insurance law and the establishment of an independent regulatory authority. The development of products tailored to socio-cultural realities, such as takaful, as well as the strengthening of human capital and the intensification of partnerships with major international reinsurers, are among the essential conditions for propelling the market to the next level.