Algeria: Industry body to take action against price undercutting
Source: Middle East Insurance Review | Jul 2017
Dumping by insurers is reducing the tax base for the government, as it leads to less taxable income, according to Mr Soufi Mohamed Hakim, CEO of Macir Life Insurance.
Mr Soufi said that price undercutting is detrimental to the insurance sector in Algeria. The practice is carried out by a number of insurers, which he did not name, reported Emerging Maghreb.
The Algerian Union of Insurance and Reinsurance Companies (UAR) is preparing to take action against companies that are dumping, he added. However, no details were provided.
He also called on government entities, when they launch tenders, not to give priority to insurers offering their services at low prices at the expense of those offering quality services.
Favouring the lowest bids encourages dumping, he said, specifying that ultimately customers will suffer from inexpensive but dubious quality services. M