Bank insurance sector expands in Algeria
Bank insurance, which includes the distribution of insurance contracts through bank networks, has recently entered the Algerian market.This method is increasingly successful in Europe, Asia and the US, as it allows insurers to benefit from banks networks' and banking institutions to diversify their offerings.
BNP Paribas, through its subsidiary company Cardif, offers several insurance products in Algeria and Cnep-Banque, which also operates with Cardif, now occupies a leader position in the real estate insurance sector, La Tribune newspaper reports.
Bank insurance allows us "to cover the loan and the borrower against major risks" explains Abdelmadjid, former director of a Cnep branch.
According to BNP Paribas, bank insurance brings
"a simple answer" to consumers' finance needs and offers benefits such as ease of access to services, product simplicity and price competitiveness.
"The insurance death-invalidity generates a lot of interest amongst employees. Of 100 people aware of this topic, 60 have immediately subscribed. Sometimes, companies themselves arrange individual contracts for their employees", Meriem Abbou, customer service advisor at the Béjaïa BNP agency, was quoted by La Tribune newspaper as saying.
In Africa, the insurance sector is still in the start-up phase and the continent has the lowest coverage rate in the world.
"With a penetration rate under 0.5 percent of the PIB, bank insurance has an important development potential", according to a group of experts from the first African Insurance Forum, which was held on November 11th and 12th 2010 in Marrakech.