Independent Insurance Authority Set for PLF 2027
The Project Law of Finances (PLF) 2027 proposes the establishment of a new independent authority for economic insurance regulation in Algeria. This new body, to be known as the "Autorité de Régulation et de Supervision des Assurances," is designed to replace the existing Insurance Supervision Commission. It will possess both legal personality and financial autonomy, signifying a modern approach to overseeing the nation's insurance landscape.
The primary responsibilities of this forthcoming authority include the comprehensive control of approved insurance companies and intermediaries. Its mandate extends to safeguarding the interests of policyholders and ensuring the financial solvency of insurance firms. Funding for the new authority will be derived from state budget allocations, supplemented by contributions from insurance and reinsurance companies calculated proportionally to their turnover. This initiative reflects a commitment to adapt the regulatory and control framework to the continuous development observed within the Algerian insurance market since 2006.
The government's rationale behind this proposed measure emphasizes equipping the regulatory body with the necessary human, material, and financial resources, mirroring successful international practices in the field. Furthermore, establishing an independent authority aims to foster neutrality within the Algerian insurance market by clearly distinguishing between the state's roles as a regulator and controller versus its capacity as a sole shareholder in public insurance companies. The current Insurance Supervision Commission is set to continue its operations on a transitional basis until the new authority becomes fully active.
