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According to an official from the Algerian Union of Insurance and Reinsurance Companies (UAR), the first takaful outlets are planned to open in the first quarter of 2022.
According to Mr Mahfoud Ziane Bouziane, the head of the personal and professional risks section of the state-owned National Insurance Company (SAA) and a UAR official, these classifications of business will comprise motor, accident, personal, and Islamic mortgage insurance. Other takaful branches will be added as time goes on.
Mr Ziane Bouziane claims that takaful products will be priced similarly to traditional insurance products. According to Dzairdaily.com, Takaful business will be conducted through windows in traditional insurance businesses or by Islamic insurance companies.
SAA intends to develop a takaful company, according to Ziane. SAA, Algeria’s largest airline, is doing a feasibility study on establishing a takaful company and preparing an application for a license.
The Algerian government approved a draft executive decree in February that lays out the requirements, regulations, and procedures for conducting takaful business in the country.
Mr Hassen Khelifati, president of Alliance Insurance and a UAR member, says he appreciates the Takaful Insurance Law’s provisions being published in the Official Gazette. However, he points out that this just covers the general framework governing takaful.
He wants the Ministry of Finance to produce the precise implementation documents that support the basic framework as soon as possible to allow insurers to engage in takaful operations, particularly about sukuk.
