Reductions on car insurance rates greater than 50% will no longer be offered. Insurance companies across the national territory are ordered to stop resorting to price competition, reducing them to more than 50%.
The announcement was made yesterday by the CEO of the National Insurance Company (SAA), Nacer Sais, on the sidelines of the launch of the new SAA website and electronic payment.
The speaker said that the SAA had signed with the other companies “a protocol, under the aegis of the Ministry of Finance which prohibits insurance companies from offering reductions in automobile insurance beyond 50%”.
Regarding the reasons behind this decision, the CEO of the national insurance company says that competition for automobile insurance “has broken all records causing insurers to snatch market share by playing on prices”.
“Automobile insurance is a branch subject to significant downward pressure on prices,” he further noted. This competition, adds the speaker, creates situations where insurers “can no longer meet their commitment”.
Is this a rate agreement?
Moreover, he explains that “all stakeholders in the sector, namely all insurers, have realized that if we do not put an end to these tariff dumping practices, insurance companies will have problems.”
That said, he specifies that the protocol cited above, signed under the aegis of the Ministry of Finance, “in no way constitutes a tariff agreement”.
In addition, the national insurance company (SAA) launched on Tuesday in Algiers online payment through its improved website, for the benefit of its customers holding interbank cards (CIB).
This service concerns two primary insurance products: multi-risk home insurance and natural disaster insurance (Cat-Nat), Nacer Sais explained during the launching ceremony of the new SAA site.