Algeria might establish an Islamic insurance system by the end of 2019

A law authorizing the Islamic insurance called «Takaful» might be passed by the end of 2019. The new legislation shall allow the commercialization of insurance products which are based on the norms and rules of the Sharia.

It aims at improving the insurance penetration rate. According to Nacer Sais, the CEO of the Société Algérienne d’Assurance (SAA), the Algerian penetration rate of 2017 only represents 0.7% of the GDP, an extremely low rate compared to the neighboring countries which hit 2% in Tunisia and 4% in Morocco.

Read also | Emergence and evolution of Takaful insurance