The low rate of insurance cover for natural disaster risks

The recent bad weather, which has severely affected the province of Ghardaia (South Algeria), has once again highlighted the low rate of insurance cover for natural disaster risks, quite commonplace in the country, though. This event was an opportunity for Amara Latrous, Chief Executive Director of Société Algérienne d'Assurance, (SAA), to present an alarming outline of the situation. According to the statistics, the insurance rate of natural disaster does not exceed 10% while the August 26, 2003 order, promulgated after the Boumerdes earthquake, compels estate property owners to underwrite such a scheme. The government, on the other hand, has admitted that the mentioned law is hardly implemented.