Bill regulating insurance activity finalized

The Algerian government has announced the finalization of a bill governing the insurance business in the country. The final document combines the existing legislative arsenal and the new regulatory provisions in a single text.

The new text is aimed at enhancing the attractiveness of the sector and adapting local insurance to both national and international economic developments.

The new provisions mainly cover:

• the establishment of an independent market regulatory authority to replace the current supervisory commission
• the consecration of Takaful insurance
• the online marketing of insurance products
• the reintroduction of compulsory insurance for goods and equipment imported by sea or air
• the extension of compulsory fire insurance to the private sector
• the development of space insurance
• the introduction of an internal control system within companies to monitor and manage risks and prevent money laundering
• combating insurance fraud
• the introduction of new distribution channels
• the generalization of out-of-court settlements for motor claims
• the simplification of compensation procedures for natural catastrophe victims
• increasing penalties for failure to insure compulsory risks