Algeria revises natural catastrophe insurance rates and deductibles

A ministerial decree published in the Algerian Official Gazette has updated the pricing parameters and deductibles applicable to natural catastrophe insurance.

The decree revises the provisions of the decree dated 31 October 2004, which was first amended in 2017.

Among the main changes is a revised rate schedule based on seismic zones, bringing it into line with Algeria’s 2024 seismic codes.

Premium rates are determined according to the seismic zone (0 through 6) and the vulnerability of the structure.

For real estate, rates range from 0.55% in zone 0 to 1.41% in zone 6, while rates for industrial and commercial facilities range from 0.37% in zone 0 to 0.94% in zone 6.

The premium may not be less than 2 500 DZD (18 USD) for real estate insurance and 3 500 DZD (26 USD) for industrial and commercial facility insurance.

Another amendment provides that the standard price per square meter of built area used to determine the insured amounts now ranges from 47 000 DZD (350 USD) to 60 000 DZD (447 USD) for single-family homes and from 38 000 DZD (283 USD) to 50 000 DZD (372 USD) for multi-unit housing.