The turnover of the Algerian insurance sector is forecast to increase by approximately 10% with the resumption of the importation of new and used vehicles.
Alliance Assurances CEO Hassen Khelifati told Echorouk TV that at the end of the first quarter of 2023, the first batches of imported cars will be available at dealerships. However, he said, the problem of price undercutting remains in the motor branch.
The government has indicated that the entry of the first car into Algeria after the ban is lifted would depend on whether dealers meet new car-import specifications.
In October 2021, president Abdelmadjid Tebboune authorised the resumption of the importation of new and used vehicles. In early November 2022, the terms and conditions that dealers have to meet to import new cars were published in the Official Gazette.
In 2016, the Algerian government started restricting the importing of new cars to try to build up the Algerian car industry and domestic car production. Another objective was to conserve foreign exchange following the decline in oil prices which began in 2014.
Eventually, the government imposed a full ban on new cars. In 2019, the government restricted the importation of car parts as well, and most foreign car makers in Algeria closed their factories.
The import ban and the COVID-19 pandemic had hit the insurance market causing it to post a stagnant performance. Motor insurance is the biggest branch of business in Algeria.
In June 2021, the government announced it would ease the ban on importing new cars and car parts. Since then, government officials have been handling permits and contracts for the commercial importation of cars.
The 2023 finance bill provides for the importation of new passenger vehicles that are less than three years old. Under the bill, Algerian citizens will be allowed once every three years to import one vehicle aged less than three years. Furthermore, vehicles imported in used condition must comply with international environmental protection standards.
The insurance sector is hoping that around 100,000 vehicles will be imported this year. M