Tunisia: Losses undermine insurers' operations
Source: Middle East Insurance Review | Dec 2019
Accumulated losses due to high claims, especially in motor business, are pushing insurers in Tunisia to search for new sources of financing and business. The insurers are also facing a number of problems due to the slowdown of their activities amid the difficult economic conditions of the country.
The latest official data showed that the compensation paid by the 22 insurers operating in the sector during the first half of this year amounted to about TND635.5m ($224.1m), compared to TND209.8m in the corresponding period last year. Motor insurance alone accounted for more than 53% of the total compensation paid, compared to about 7.4% for fire insurance.
To avoid further problems, insurers have begun to seriously seek new sources of funding or revenue, such as expanding into pension insurance to maintain the stability of their business, according to media reports.
The authorities’ decision to limit the importation of cars since the beginning of last year appears to have had a major impact on insurers. Some car dealers and insurers in Tunisia see the decision to curb the growing trade deficit as a new blow.
In addition, purchasing power in the country has deteriorated considerably in recent years, requiring citizens to review their lifestyles and dispense with services in most sectors due to high prices and limited per capita income. M
TND1 = $0.35