AM Best: Algerian insurance market poised for growth

According to AM Best, Algeria’s insurance market is showing strong potential for growth, foreign investment, and enhanced profitability.

The sector's development is supported by favorable demographic trends, economic development, and ongoing regulatory reforms in the country.

These growth catalysts set Algeria apart from other markets in the MENA region.

While local insurers are still recovering from the decline in premium volumes during the Covid-19 pandemic, the sector still faces structural hurdles, most notably, the lack of a risk-based solvency framework and a persistently low insurance penetration rate, currently below 1%.