News Coronavirus watch23 Sep 2020

Algeria:Insurance premiums fall by 12.5% in 1H

| 23 Sep 2020

The Algerian insurance market posted a 12.5% fall in revenue to around DZD71bn ($551m) for the first half of this year compared to DZD81.2bn for the corresponding period of 2019, according to data released by the National Insurance Council (CNA).

Non-life insurance dominated the insurance market, with a share of 86.3% (DZD60.8bn) against 9.2% (DZD6.6%) for life insurance. International acceptances stood at DZD3.6bn, an increase of 1.4% over the first half of 2019.

The statistics indicate that for the second consecutive quarter, the insurance market was affected by the COVID-19 pandemic. In the first three months of this year, insurance companies in Algeria saw premium income fall by 4.9% to DZD40.6bn.

Motor insurance generated premiums of DZD33.8bn in 1H20, down by 10%, and contributed 55.6% of the P&C insurance portfolio. The decline is mainly explained by the suspension of operations of automobile assembly plants and closure of vehicle showrooms during the pandemic lockdown. Also, motor business fetl the negative imapct of the 1 January introduction of the anti-pollution tax, which caused a drop in the number of policies taken out with optional covers.


 

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