Algeria: Insurance market grows by 5% in 2022
Source: Middle East Insurance Review | Feb 2023
The insurance sector in Algeria expanded by 5% during the 2022 financial year in terms of premium income, according to the Algerian Union of Insurance and Reinsurance Companies (UAR) president Youcef Benmicia.
The insurance sector was able to achieve growth of 5% in 2021 and the same rate in 2022, after a decline in 2020 induced by the COVID-19 pandemic, reported Algerian Press Service quoting Mr Benmicia.
The National Council of Insurance previously announced that the overall turnover of the Algerian insurance market reached DZD151.9bn ($1.1bn) in 2021, increasing by 4.8% over 2020. The figure includes direct premiums (DZD145.2bn) and international reinsurance acceptances (DZD6.7bn).
Detailing the figures recorded in 2022, Mr Benmicia revealed that claims and benefits paid increased by 16%, stressing that the large part of the compensation was related to traffic accidents (60%). Motor insurance constituted 50% of insurance activity in Algeria, compared to 10% for personal insurance.
In comparison, total compensation paid in 2021 stood at DZD71.7bn, an increase of 12.5% over 2020.
Mr Benmicia said that 25 companies are active in the insurance sector, including two that entered the market in 2022. Among the insurance companies, 12 are general insurers, eight are life insurers and five companies, including two new ones, are engaged in takaful. M