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Soon a more neutral and transparent insurance market
The new insurance law
The Algerian insurance market will experience, during the current year, significant reforms, thanks to the adoption of a new law governing the sector, capable of promoting its good governance, by strengthening its regulation and developing the “Takaful” insurance, indicated the Minister of Finance, Laaziz Faid. In an interview recently given to the Asian magazine specializing in insurance, Asia Insurance Review, the minister specified that among the main reforms expected in this context, the establishment of a “more autonomous and more independent” market supervision authority. This authority should “give the insurance market greater transparency and total neutrality, by distinguishing between the missions of the regulatory and supervisory State and those of the sole shareholder State in public insurance companies”.
The year 2024 should also see “Takaful” insurance experience greater growth, thanks to the strengthened legal anchoring of this segment, which will allow this form of insurance to “play a better role in revitalizing the financial sphere and strengthening the development of alternative banking products,” he maintained.
Benefiting from a new and appropriate regulatory environment, e-insurance will, in turn, experience a qualitative leap, encouraged by the increasingly widespread use of digitization and digital media in the insurance sphere. The implementation of the new Insurance law will also result, in the commercial sphere, in the reintroduction of the obligation to insure goods and capital goods imported by air or sea, with a insurance company. insurance approved in Algeria, said Mr. Faid. Fire insurance will, moreover, be extended to all operators, both public and private, he continued, citing, among other measures which will be implemented this year, the consecration of insurance
”Takaful”, and the obligation for insurance companies to set up an internal control system aimed at identifying, evaluating, managing and monitoring risks.
The minister mentioned, in the same vein, the establishment of a system to combat money laundering, the legal anchoring of the fight against insurance fraud, the predilection in automobile insurance of amicable compensation before recourse to justice, of the revised scale of compensation for bodily injury, with the reduction of the insurance system against the effects of Natural Disasters (Cat-Nat), by giving the possibility to insurance companies to compensate victims even in the absence of the Order declaring a state of natural disaster. Among the other reforms cited, the submission of the technical provisions of insurance companies to certification by an approved actuary and the obligation, in terms of construction, to take out ten-year Civil Liability (RC) insurance from the opening of the site. Insurance linked to the agricultural sector is not left out, the minister insisted, due to the fact that an insurance system for agricultural calamities, developed as part of a broad consultation program led by the Council National Insurance, should be introduced into the overall insurance scheme in Algeria. Djamila Sai