According to a letter from the chairman of the Insurance Supervision Commission addressed to the chairman of the Algerian Insurers Union (UAR), the level of receivables from the insured has been continuously increasing over the last four years.
Level of receivables from the insured (2016-2019)
| Years | Receivables | Growth rate | |
|---|---|---|---|
| In billions DZD | In billions USD | ||
| 2016 | 39.6 | 356.98 | |
| 2017 | 44 | 379.48 | 11% |
| 2018 | 46.9 | 392.45 | 6.5% |
| 2019 | 48 | 401.09 | 2.4% |
As at 31 December 2019, the insurance companies' financial statements show a level of receivables of 48 billion DZD (401.09 million USD). This amount represents 33% of the Algerian insurance market [4] turnover.
As at 31 August 2020, unpaid receivables reached 68.5 billion DZD (533.4 million USD), a 10% increase compared to the same period in 2019. The health crisis has aggravated the amount of receivables in 2020.
This situation has impacted the technical and financial balances of insurance companies. The Insurance Supervision Commission is calling on insurers to take measures for a better management of credit risk and to increase collection efforts.
Insurers must ensure the payment of premiums in accordance with the law which stipulates that the guarantee does not take effect until the day after the premium is paid, at zero hour.