Insurances

The projected market size (gross written premium) of the Insurances market in Algeria is expected to reach US$4.24bn in 2024.
Life insurances dominate the market with a projected market volume of US$2.23bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$91.53 in 2024.
When compared globally, the United States is expected to have the highest nominal value, reaching US$3.8tn in 2024.
The gross written premium is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.51%, resulting in a market volume of US$4.34bn by 2029.
In terms of global comparison, the United States is projected to generate the highest gross written premium in 2024, amounting to US$3.8tn.
Algeria's insurance market is experiencing a surge in demand for health and life insurance products, driven by a growing middle class and increasing awareness of the importance of financial protection.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Algeria is experiencing significant growth and development, driven by various factors shaping the industry landscape in the country.

Customer preferences: Algerian customers are increasingly seeking insurance products that provide comprehensive coverage and financial security. With a growing awareness of the importance of insurance in mitigating risks and uncertainties, there is a rising demand for a wide range of insurance offerings tailored to individual and business needs. Customers are also showing a preference for digital insurance services, prompting insurance companies to enhance their online presence and offer convenient digital solutions.

Trends in the market: One of the key trends in the Algerian insurance market is the increasing penetration of insurance products among the population. As income levels rise and the middle class expands, more individuals and businesses are opting for insurance coverage to protect their assets and investments. Moreover, the introduction of new insurance products and innovative distribution channels is driving market growth and attracting a larger customer base. Additionally, regulatory reforms and initiatives aimed at strengthening the insurance sector are contributing to the overall positive trend in the market.

Local special circumstances: In Algeria, the insurance market is influenced by unique local circumstances, including regulatory frameworks, socio-economic factors, and cultural preferences. The government plays a significant role in regulating the insurance industry and ensuring compliance with standards and practices. Moreover, cultural attitudes towards risk and insurance influence customer behavior and preferences in the market. Insurance companies need to consider these special circumstances and tailor their products and strategies accordingly to effectively cater to the Algerian market.

Underlying macroeconomic factors: The development of the insurance market in Algeria is also influenced by underlying macroeconomic factors such as economic growth, inflation rates, and stability in the financial sector. A stable economic environment and favorable regulatory policies create a conducive atmosphere for insurance companies to expand their operations and introduce new products. Furthermore, increasing investments in infrastructure projects and the diversification of the economy contribute to the overall growth potential of the insurance market in Algeria.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.