THE EVOLUTION OF REINSURANCE SUPPLY IN ALGERIA: AN ANALYTICAL STUDY
Abstract
This study aims to analyze the development of the reinsurance offering in Algeria by examining the evolution of national acceptances, primarily represented by the premiums accepted by the Central Reinsurance Company (CCR), and international acceptances by foreign reinsurance companies during the period (2010-2023). The study mainly employs a qualitative descriptive approach. The research concluded that, since the implementation of Executive Decree No. 10-207, the mandatory cession rate to the CCR has increased to 50%, leading to a rise in the volume of premiums accepted locally to over 90% of the CCR’s total activity. In contrast, international premiums did not exceed an average of 10%. Although national acceptances constitute the bulk of the CCR’s business, the company has achieved notable progress in the international market in recent years thanks to policies aimed at expanding its external activities. The dominance of the local market is attributed to the CCR's monopoly over national acceptances, enhancing its capacity to absorb major risks in the local market, particularly in the IARDT (Fire, Accidents, Miscellaneous Risks, and Transport) branch and natural disasters. However, the company faces challenges in the international market, including intense competition in Europe. In conclusion, the research highlights the importance of developing the Algerian reinsurance market by updating the legislative framework and creating a competitive environment, which would enhance the ability of Algeria to manage risks more effectively locally and internationally.
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