Inter-company agreement to boost the Algerian motor insurance market

Non-life insurance companies have signed an agreement to improve the motor activity in Algeria. The agreement, signed by 2A, Alliance, AXA, CAAR, CAAT, CASH, CIAR, CNMA, GAM, SAA, SALAMA and TRUST, will come into force on 1 January 2021. The new system replaces an agreement signed in 2012 which, according to the insurers, has become inoperative.

The aim of the approach is to improve the activity's technical results and ensure better quality service to customers.

The new measures mainly include:

• the adoption of minimum premium rates per coverage
• the prohibition of the granting of optional guarantees without consideration (premiums)
• the application of deductibles to motor damage coverages
• the mandatory implementation of the capital average clause for claim notifications in the event of underinsurance at the time of underwriting.

The Memorandum of Understanding was approved by the Insurance Supervisory Committee.