Algerian insurance companies suspend personal insurance
The delay granted by the Algerian government for insurance companies to separate the activity of personal and damage insurance has just expired.Since June 30th, all associated companies have suspended their activities relating to personal insurance, as they no longer conform with the legislation, La Tribune newspaper reports.
Law No 06/04, February 20 2006, states that enterprises must create specialised branches for such products, with a minimum capital of 1 billion dinars (€9.6 million).
However, insurance providers believe this market is not big enough to justify the creation of such outlets.
"This segment only represents eight per cent of the sector with a turnover of 300 million dinars", Tahar Bala, Chief Executive Officer (CEO) of insurance company l’Algérienne des Assurances 2a, told la Tribune.
He added that his group wants to find a partner to set up a specialised branch.
This is a decision CEO of Alliance Assurance Hassan Khelifati also wants to take, as he is expected to launch a branch before the end of 2011.
He told Maghreb Emergent newspaper that his company is about to sign a partnership agreement with a multinational insurance firm, without revealing its name.