Algeria's proposed new insurance law, currently being finalised, is expected to inject new momentum into the sector, according to the Delegate General of the Union of Insurance and Reinsurance Companies (UAR), Mr Abdelhakim Berrah.
Growth will be generated in particular through the development of InsurTechs and the creation of an independent regulatory authority for insurance operations, reported Algeria Press Service, quoting Mr Berrah.
He described the actions taken by the government in recent years, which have strengthened and modernised the insurance market, as important levers that support the transformation of this strategic sector, whose penetration rate and contribution to the country's GDP remain far below the true potential of the market.
Nevertheless, the sector continues to show positive and sustained growth, marked in particular by significant growth dynamics in 2025, especially in the personal insurance sector (life and death, health, travel, and others). This has seen a double-digit growth rate, said Mr Berrah, who was appointed to the UAR position on 1 February 2024.
He noted that the property and casualty (P&C) insurance segment—including fire, miscellaneous, agricultural and, in particular, motor insurance—continues to expand broadly in line with the national economy, despite the presence of growth drivers that remain underutilised.
As highlighted in the latest economic outlook report from the National Insurance Council (CNA), published at the end of October, the national insurance market generated a total turnover estimated at DZD99.3bn ($765m) in the first half of 2025, representing overall growth of 8.1% compared to the corresponding half of 2024.
P&C insurance, representing 83% of the domestic market, recorded total revenue of DZD80.6bn between January and the end of June 2025, an increase of 8.2%, while life and health insurance saw growth of 6.7% during the same period, with premiums reaching nearly DZD12bn.
Despite its financial soundness and sustained profitability in recent years, the Algerian insurance sector remains structurally underdeveloped, marked by poor product diversification, inadequate service quality, outdated management practices, and persistently low penetration.
This has prompted the government to initiate a reform process aimed at the reorganisation of the insurance industry, notably through a new legislative framework to improve governance and accelerate its modernisation.
The Bill, proposing amendments to the current insurance law—which dates to 1995—is eagerly awaited by industry stakeholders. It has already undergone its first reading by the Council of Ministers and was subsequently revised at the instruction of the Head of State, who specifically directed that the new text should “contain no loopholes,” in order to prevent a recurrence of past practices that harmed the public treasury.