Insurance professionals are optimistic that proposed amendments to Algeria's insurance law would promote the development of the industry as the legislation moves closer to enactment. The draft Bill was recently returned, after revision, for review by the Head of State.
The draft Bill was amended on the instruction of the Head of State, who specifically directed that the new text should “contain no loopholes,” to prevent a recurrence of past practices that harmed the public treasury.
Industry executives hope that the legislative revamp would provide for the establishment of an independent regulatory authority dedicated to insurance, reported El Moujahid. Such an authority would be the first of its kind for Algeria. They expect the regulator to put an end to certain prohibited practices and "bring more rigour to the sector", said Mr Hassan Khelifati, Vice-President of the Algerian Union of Insurance and Reinsurance (UAR).
The insurance industry also wants to see the law require co-insurance of major risks before insurers turn to the international reinsurance market. This is to reduce the flow of foreign currency out of Algeria.
Other measures are expected. These include the mandatory insurance of imported vehicles and new regulations concerning FinTechs and InsurTechs.
On his part, UAR President, Mr Youcef Benmicia, (Union of Algerian Insurance Companies), proposes mandatory insurance for goods transported by air and sea to protect the national economy, as well as fire insurance to safeguard industrial assets.
The current insurance law dates to 1995.