The Tunisian authorities will promote mergers among insurance companies to consolidate the industry and establish national insurance champions emulating the example set by Morocco, according to Mr Hafedh Gharbi, President of the insurance regulator, General Insurance Committee (CGA).
Mr Gharbi, who was speaking at a recent conference organised by the National Union of Insurance Agents, said that there are 22 insurance companies operating in the sector. In addition, there are 990 insurance agents and 66 brokers.
In 2015, the insurance sector reported a turnover of about TND1.68 billion (US$729.6 million), with a penetration rate of 2%. Combined net profit for the industry stood at TND188 million.
Mr Gharbi said that the data indicated that the insurance sector is not such a profitable sector, given the difficulties encountered, reported the Maghrebi Economist.
He said that a central unit that caters to all insurance companies will be established late this year. It will work to improve insurance awareness, reinforce modes of supervision over insurance companies and agents through the authority of CGA and ensure the financial solvency of insurance companies.
As for the reforms relating to insurance agents, Mr Gharbi said that given the importance of the distribution network in general and that of insurance agents in particular, several measures had been identified to deal with shortcomings. He said that even with bancassurance, insurance sales through the post office and the presence of brokers, the Tunisian insurance market is far from saturated and remains under-exploited, particularly in certain areas where the banking rate remains low and limited. Earlier this year, the CGA Board approved a Code of Conduct for insurance agents.
A revision of the Insurance Code is underway this year and next, he added. The focus is on raising the professional qualifications of licensed insurance agents, introducing the principle of management of conflict of interest by listing a number of functions that are incompatible with one another; requiring insurance agents to take out civil liability insurance, and establishing rules for renewing an agent's licence such as training requirements so as to ensure that agents keep pace with legal, technical and commercial developments.
TND1= US$0.43