Algeria: Proposal raised for motor insurance pricing scale

Source: Middle East Insurance Review | Jul 2023

There is an urgent need to reform the pricing of motor insurance which accounts for around 50% of the turnover of insurance companies in Algeria said Alliance Assurances CEO and chairman Hassen Khelifati.

In an interview with the news website TSA he said he proposed a scale for compulsory motor third-party liability insurance premiums that would take into account the value and type of vehicle and type of engine. He said inaction would risk suffocating insurance companies.

“The financial imbalance is abysmal between premiums for motor third-party liability insurance and the financial costs of automobile claims. It’s not normal for someone who owns a car worth a DZD1m ($7,387) to pay the same as someone who has a vehicle that costs DZD15m,” he said.

Mr Khelifati’s comments reflect the view of the insurance industry that has been making repeated calls for motor insurance reform and called the current pricing ‘derisory’. M

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