New Mechanisms to Boost Insurance Activity in Algeria
The Algerian Minister of Finance, Laaziz Faid, announced that the ministry is working on implementing new mechanisms to enhance insurance activity in the country. Key points include:
A new project in collaboration with the United Nations Development Programme (UNDP) aims to develop Algeria’s insurance sector, which currently underperforms relative to the country’s economic potential.
The project, part of UNDP’s “Insurance and Risk Finance Facility” initiative, seeks to design inclusive insurance solutions in over 50 countries, including Algeria, by 2025.
Goals include strengthening capabilities of insurance stakeholders, developing comprehensive insurance solutions, raising public awareness about insurance, and supporting risk financing mechanisms.
Despite annual growth, insurance penetration in Algeria remains low at around 1% of GDP.
The insurance sector is crucial for protecting people and assets, as well as attracting financial resources to fund the national economy.
Since liberalizing the insurance market in 1995, the number of insurance companies in Algeria has grown from 6 to 25.
Business volume reached 162 billion dinars in 2023, up from 23 billion dinars in 2006.
In 2021, Takaful insurance was introduced to provide more inclusive insurance options.
Two companies specializing in Takaful insurance have been approved so far, marking a significant step in developing this new insurance model.
The minister emphasized that these reforms and new mechanisms aim to significantly boost insurance activity in Algeria and provide more comprehensive coverage options for citizens.
DZWATCH.DZ
Author: nor-eleslam
Keyphrase: insurance sector development Algeria
