Decrease of public investments is straining insurance business

Amara Latrous, chairman of Union of Algerian insurers (UAR) and CEO of SAA, has recently expressed concern over the decline of public investments and their fallout on the insurance industry. The national insurance board (CNA) confirms this trend. He added that the premiums volume of industrial risks went down by 13% in 2010 and 2011 due to the slowdown of State-driven investments, especially in huge projects, and to the fierce competition among insurers. Marine insurance is also on a downward trend. Its turnover has decreased by 4.4% in 2010 and by 7% in 2011. The fall in State-driven investments is likely to gather momentum in the coming years. The finance act is forecasting a 10% decline for this kind of expenditure.