The supervisory authority is planning to raise insurance companies' minimum capital from 450 million DZD (6.2 million USD) to 2 billion DZD (27.920 million USD) for non-life insurance and to 1 billion DZD (13.960 million USD) for life insurance. Moreover, insurers are bound by the new law to create separate entities for their life operations in 2011.
For a group keen on practicing life and non-life operations, the capital would rise from 450 million DZD (6.2 million USD) to 3 billion DZD (41.880 million USD). According to H. Khelifati, chairman of Alliance Assurances, this move is excessively binding. It would force companies to multiply their capital more than six folds in a very short lapse of time.
To consolidate the insurance sector, Alliance's chairman recommends among others a 50% increase of the motor third party liability tariffs, the establishment of a stock market, the opening of CCR's capital to banks and insurance companies, a review of the legislation governing license granting to general insurance agents.