The insurance sector is in a bad patch, because many Algerians have unpaid premiums with insurers that total up to DZD25bn ($193m), reveals the Algerian Union of Insurance and Reinsurance Companies (UAR).
A UAR source says that the rate of payment of insurance premiums has dropped by 30%, reported the news daily Echorouk. The cause of the receivables in insurers' books is the difficult situation resulting from the COVID-19 pandemic. Many businesses which purchased insurance suspended operations during the lockdown period.
Insurers have also been affected by the 2020 Finance Law that requires insurance companies to collect an environmental tax from vehicle owners who buy motor insurance. The tax, imposed since 1 January, has resulted in many customers giving up the insurance cover.
The second half of this year is expected to also be difficult for insurance companies.