The Algerian government has set the pricing parameters as well as the deductibles applicable to natural catastrophe insurance policies.
The pricing presented in a ministerial decree sets the premium rate according to the seismic zone (Zone 0,1,2a, 2b and 3) and to the vulnerability of the construction. For example, premium rates range from 0.55 ‰ for a real estate located in zone 0 to 1.25 ‰ for a risk in zone 3. For industrial and commercial properties, premium rates range from 0.37 ‰ in zone 0 to 0.83 ‰ in zone 3.
The ministerial order sets the minimum premium to 1500 DZD(14 USD) for real estate insurance and 2500 DZD (23 USD) for industrial and commercial construction insurance.
Finally, for the sums insured , the normative price per square meter varies between 28 000 DZD (256 USD) for individual dwellings located in zone 0 and 47 000 DZD (429 USD) for those located in zone 3. For collective dwellings, this price is set between 25 000 DZD (228 USD) in zone 0 and 38 000 DZD (347 USD) in zone 3.
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