The Algerian insurance sector has experienced significant growth, reporting revenues exceeding 131.7 billion DZD during the first nine months of 2024. This remarkable performance was highlighted by the emerging “Takaful” insurance market, according to Abdelhakim Berrah, the General Delegate of the Algerian Union of Insurance and Reinsurance Companies.
Positive Dynamics and Key Growth Drivers
In a statement to the Algerian News Agency (APS), Mr. Berrah emphasized the sector’s positive trajectory, stating, “By the end of September 2024, the insurance sector demonstrated positive dynamics, with total revenues reaching 131.7 billion DZD, marking a 4.9% increase compared to the same period in 2023.” This growth was largely driven by a substantial rise in international reinsurance acceptances, which surged by 51.4%, contributing 8.7 billion DZD to the total revenue between January and September.
These results underscore the resilience of the market and its strategic role in the national economy, Mr. Berrah added.
Takaful Insurance: A Breakthrough Segment
The Takaful insurance segment, a relatively new entrant to the market, has shown extraordinary growth. By the end of September 2024, Takaful insurance achieved a total revenue of 390.1 million DZD, representing an impressive increase of 319.8% compared to the previous year.
This growth encompasses both “General Takaful” and “Family Takaful” services, which generated revenues of 220 million DZD and 170 million DZD, respectively.
Claims Performance and Payouts
In the area of claims and compensations, property insurance companies reported a 9% reduction in payouts, amounting to 43.49 billion DZD year-over-year. Conversely, life and personal insurance payouts rose significantly, reaching 5.6 billion DZD between January and September 2024, an increase of 15.4% compared to the same period in 2023.
Industry Overview
Established in 1994, the Algerian Union of Insurance and Reinsurance Companies serves as a professional association representing insurance and reinsurance companies, as well as branches of foreign firms operating within the sector. This body continues to play a pivotal role in advancing the industry and fostering its integration into the broader economic landscape.
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Author: Nor-Eleslam
