Property Owners Benefit from Mandatory Disaster Coverage
Algeria has maintained a mandatory natural disaster insurance scheme, known as CAT-NAT, for property owners and businesses since 2003. Instituted by Ordinance n° 03-12 of August 26, 2003, this foundational regulation requires all owners of built real estate, whether individuals or enterprises, to insure their properties against the effects of natural catastrophes. The obligation, which came into effect in 2004, also extends to professionals, requiring them to insure their industrial and commercial installations and their contents.
The CAT-NAT system is designed to cover direct material damages to insured properties resulting from natural events of exceptional intensity, as defined by Executive Decree n° 04-268 of August 29, 2004. For an insured party to receive compensation, an interministerial decree must first be published in the Official Gazette, officially declaring the state of natural disaster and specifying its nature, date, and affected area. Following this declaration, insured parties file a claim with their insurance company, which then mandates an expert to assess the damages, with indemnification to follow within three months of the expert's report.
Demonstrating an ongoing commitment to modernizing its protective frameworks, Algeria's Ministry of Finance revised the CAT-NAT tariff schedule through an order issued on July 21, 2026. This update, published in the Official Gazette on August 29, 2026, aligns seismic zoning with the 2024 Algerian Paraseismic Regulations (RPA 2024) and adjusts tariffs according to different zones. The revision also updates the normative price per built square meter—crucial for calculating insured property value—and raises minimum annual premiums. Notably, specific groups such as retirees affiliated with the CNR and personnel from the National Education sector benefit from special reductions on their premiums, underscoring the social considerations embedded within the insurance system.
