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The coronavirus outbreak deepens the crisis facing the Algerian insurance market, which has been affected by a lack of liquidity and a decline in motor underwritings.
At the end of the first quarter 2020, the market's turnover has dropped by 10% compared to the one recorded during the same period in 2019. The Algerian union of insurance and reinsurance (UAR) states that this decline is mainly due to:
- The new environmental tax levied on insurers on behalf of the State. Such a fine pressures some policyholders to opt for the cheapest motor coverage.
- The suspension of the activities of automotive assembly plants has impacted the sales, consequently causing a drop in underwritings.
Since then, the coronavirus pandemic has only aggravated the situation of Algerian companies, which have put 75% of their staff on lay-off.
