News12 Oct 2017

Algeria:Insurers mired in more than US$650 million of unpaid claims

| 12 Oct 2017

Claims to be paid by insurers to policyholders or their beneficiaries amounted to DZD74.3 billion (US$655 million) at 30 June 2017, about the same as the DZD74.5 billion payable at 30 June 2016.

Insurers settled claims totalling DZD26.9 billion in the first half of 2017, down by 30.6% from the DZD38.3 billion paid in the first six months of 2016, according to a report by the National Insurance Council (CNA).

The sector has been hit by a sharp decline in imports of new vehicles and reduction in capital expenditure. In the difficult economic conditions that have affected the sector, some insurers are undercutting premiums. The persistence of certain dysfunctions will reduce the resilience of the sector in the long term, warn some insurers.

Premiums in the non-life sector, which represents more than 92% of the insurance market in Algeria, are estimated at DZD61.7 billion for the first six months of this year, down by 3.8% compared to the corresponding period last year, reported Liberty Algeria, citing the CNA report.

All property branches showed a decline in business in the first half, with the exception of credit insurance which saw premiums rise by 38.3% to more than DZD919 million. The automotive sector, which accounts for nearly 60% of the property and casualty insurance market, posted a 3.8% decline in sales to DZD34.5 billion.

Personal insurance though was a bright spot, generating revenue of DZD6.75 billion in the first half of the year, boosted by the performance of life business where premiums grew by 32.5% to DZD2.2 billion from January to June. Business in the other personal insurance segments, namely accident, sickness and group cover, however, declined.


 


 

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