State-owned Société Nationale d'Assurance (SAA or National Insurance), Algeria's biggest insurer, has a track record of stable operating performance, with profit before tax ranging from DZD2.5bn ($22.6m) to DZD3.6bn between 2019 and 2023, translating in a five-year weighted average return on equity of 6.3% (as calculated by AM Best).
Takaful insurance is experiencing fast growth in Algeria, backed by an enabling legislative and regulatory framework. As the sector grows, it is likely that new players will enter the market, driving competition and innovation.
The Central Reinsurance Company (CCR) achieved gross premium income that increased sharply by 14.6% to DZD46.5bn ($350m) in 2023, compared to the previous financial year.
Insurance companies are looking forward to the establishment of an independent supervisory authority as part of reforms to be brought about by a new insurance law.
The insurance company , El Djazair Takaful, has started to distribute its insurance surplus to insured companies and individuals, according to a statement released by the company.
Algeria's proposed new insurance law, whose enactment has been delayed, can address several challenges facing the insurance industry, according to Cash Assurances former CEO Mokhtar Naouri.
Insurance in Algeria is far from inclusive, particularly against climatic risks, natural disasters and other agricultural calamities, in the view of Mr Mokhtar Naouri, former CEO of Cash Assurances.
Algerian insurance brokers are struggling to compete with their international counterparts, and their strength needs to be increased, according to insurance expert Mr Djamel Abbaci.
The revenue of the Algerian insurance sector increased to DZD89.8bn ($680m) in the first half of 2024, 7% higher compared to the first half of 2023, according to data released by the Algerian Union of Insurance and Reinsurance Companies (UAR).
While takaful has gained significant acceptance among Algerians, the sector still faces some hurdles that hinder its growth, including regulatory and technological obstacles and the lack of awareness campaigns, according to two academics.