The impact of the Middle East war on Algeria's insurance industry is "Indirect but nonetheless significant", according to the CEO of Société Nationale d'Assurance (SAA, or National Insurance Co) Youcef Benmicia.
He told Middle East Insurance Review that the impact is driven largely by uncertainty around key shipping routes and its implications for marine and energy businesses, filtering into domestic markets through trade, energy exposure and reinsurance, amid global risk repricing.
Mr Benmicia said the impact of the month-long conflict is most visible in marine cargo and energy-related risks. He noted that “war-risk premiums are rising globally, affecting import and export flows”, while Algeria’s reliance on oil and gas exports makes the sector particularly vulnerable. In response, insurers are enforcing stricter underwriting discipline, with tighter policy terms and higher deductibles for internationally exposed risks.
Insurance demand
Another consequence is that demand for insurance remains selective rather than broad-based. “We are observing a measured but selective increase in risk awareness, rather than a broad surge in demand,” Mr Benmicia said, pointing to growing interest among large corporates in energy, logistics and trade for marine war-risk extensions and business interruption cover.
He added that the Algerian insurance industry remains structurally conservative, with sophisticated products such as political risk and trade credit insurance largely limited to major industrial players.
Reinsurance pressures mount
Mr Benmicia also said that the most immediate pressure point is reinsurance, with stakeholders actively repricing geopolitical exposure. He pointed to sharply higher premiums in high-risk maritime zones, tighter treaty conditions and reduced capacity. For a market like Algeria’s that relies heavily on reinsurance, these changes are quickly transmitted into domestic pricing and underwriting practices.
At the same time, supply chain disruptions and oil price volatility are creating a complex operating environment. While higher oil prices can boost liquidity and support insurance demand, they also increase overall exposure.
Algerian insurers are strengthening risk monitoring and tightening underwriting standards, while continuing to depend on reinsurers for technical guidance, said Mr Benmicia.