Insurance: promising prospects

This organisation will include a regulatory authority, the first of its kind, which will put an end to certain prohibited practices and "bring greater rigour to the sector", according to Hassan Khelifati, vice-president of the Algerian Union of Insurance and Reinsurance Companies (UAR).

The same official also proposes introducing "compulsory co-insurance for major risks before going to the international market, to use national capacity, reduce the amount of foreign currency transferred abroad for reinsurance, and enable all Algerian companies to gain expertise in managing this type of risk".

Further measures are expected. Among other things, the same official emphasises the obligation to ensure imported vehicles and new developments concerning fintechs and insurtechs. For his part, Youcef Benmicia, President of the UAR, is also proposing compulsory insurance for goods transported by air and sea to protect the national economy, as well as fire insurance to protect industrial assets. Regarding the sector's development, Mr Khelifati expects a 3-4% increase in turnover by the end of 2025 compared to the previous year. It should be noted that, among other guidelines, the President of the Republic had stated that "the insurance sector was closely linked to national sovereignty and the draft law should be free of loopholes to avoid the methods used in the past to the detriment of the public treasury".

The Head of State has instructed that "the activities of insurance companies be monitored continuously and periodically, with the greatest importance being placed on services rather than on raising funds through easy methods and quick profits, and that the areas of insurance be expanded to include other specialities". As for the company he heads, Alliance Assurance, the same official indicates that the company is staying the course and forecasts 8.3% growth in turnover, an increase of 7 billion dinars compared to 2024.

For his part, Mr Benmicia states that the SAA, of which he is the chief executive, has recorded initial results of 37 billion dinars in turnover, representing a 13% increase compared to 2024. He points out that the past year has been a fruitful one, with the expansion of the company's distribution points, which now number around 1,000, as well as the launch of important products related to cyber risks. Better still, Mr Benmicia said, SAA "will soon launch a mobile application for taking out car insurance, which will also include file tracking, online payment, etc.".