Algeria: “Import Of Cars, Under 3 Years Old, Up 150 Per Cent”

The turnover of the automobile insurance sector recovered unprecedentedly during the first nine months of this year, reaching nearly 53 billion dinars, or 5300 billion centimes, which the National Insurance Council attributed to a 150 per cent increase in the importation of cars under three years old between January and September 2024.

The turnover of the insurance sector in Algeria as of 30 September reached 131.7 billion dinars, a growth rate of 4.9 per cent, with 9.1 million insurance contracts registered and the number of contracts growing by 9.5 per cent.

Risk insurance accounted for 82.3 per cent of the sector’s share with a turnover of 108.4 billion dinars compared to 14.3 billion dinars for personal insurance and 27.7 per cent.

In terms of figures, the value of the declaration of accidents by insurance companies until 30 September was 63.7 billion dinars, an increase of 4.7 per cent, while the number of declared accidents increased by 21 per cent, and the compensation made amounted to 49.2 billion dinars for one million and 49,745 files that were settled, and risk insurance companies monopolized 88.4 per cent of the files, while the accident files still awaiting compensation amounted to one million and 969,221 files worth 124.5 billion dinars.

As for the level of settlement of files, by amount, it decreased by 8 per cent from 32.2 per cent on 30 September 2023 to 29.6 per cent during the same period of the current year, while the settlement rate in terms of files increased by 3.9 per cent.

As for the figures related to accident insurance, they reached 108.4 billion dinars on 30 September compared to 106 billion dinars last year, an increase of 2.2 per cent with an additional production of 2.4 billion dinars, noting that this growth is due to the increase in the motor division, which represents 48.8 per cent of the total risk insurance and an additional amount this year equivalent to 3.2 billion dinars, knowing that the branches of insurance for loans, agriculture and transport continued to rise by an additional 610.5 million dinars, while the fire and multiple risks division decreased by 1.4 billion dinars during the first nine months of the current year compared to the same period of the last year, while the fire and multiple risks division decreased by 1.4 billion dinars.

As the largest share of the insurance market, the turnover of the Motor Insurance Division reached 52 billion 904 million 860 thousand 274 dinars compared to 49 billion 734 million 998 thousand 59 dinars, an additional increase of 3 billion 169 million 862 thousand 221 dinars, or 6.4 per cent.

This  hike is due to the increase in the demand for non-mandatory motor insurance by 7.6 per cent, with a value of 2.9 billion dinars, and the increase in compulsory motor insurance by 1.9 per cent, due to the increase in the underwriting rate by 2.9 per cent due to the increase in the import of cars under three years by 150 per cent during the first nine months of this year compared to the same period of last year.

The number of files deposited with car insurance companies until 30 March reached 5 million, 915 thousand and 117 files, an increase of 6.4 per cent and in terms of the amount of nearly 53 billion dinars.

With regard to compulsory risks, the same number of files equalled 10 billion, 650 million, 655 thousand and 645 dinars, while non-compulsory risks equaled 42 billion, 254 million, 204 thousand and 629 dinars, an increase of 2.79 billion dinars, and private insurance companies generally accounted for 23.3 per cent of the market share compared to 21.6 per cent during the same period last year.

As for the automotive branch, the value of accidents declared during the first nine months of the year amounted to 40 billion 852 million 200 thousand 991 dinars, the number of settled accidents amounted to 31 billion 298 million 278 thousand 316 dinars, and the value of accidents awaiting compensation related to vehicles amounted to 5 billion 381 million 328 thousand 635 dinars.

Overall, the files filed during the same period related to cars amounted to 873 thousand and 75 files, those settled 570 thousand and 542 files and those awaiting compensation 1,818 files.