many Tunisians do not maintain private policy coverage. This is specially true for life indemnity. Low domestic savings rates and cultural factors, such as the reliance on the extended syndicate network in case of death or disability or property damage, contribute to a miss of coverage in most policy segments .
Despite the general miss of public matter to in purchasing indemnity policies, however, a wax roll of products is available, and some are mandated by law. twenty-two policy companies operate in the tunisian commercialize, 15 of which handle a fully range of indemnity products. The rest offer a overtone menu of indemnity products ; for example, life, export, and credit indemnity, and reinsurance. Two are subscriber-based common indemnity companies, three are Islamic “ takaful ” ( i.e., co-operative system of reimbursement in case of personnel casualty ) insurance companies, and one is an department of agriculture reciprocal fund that offers crop indemnity. private corporations dominate, with a marketplace plowshare of 60 % in 2019 ; state-owned enterprises and common companies controlled about 30 % and 10 % of the grocery store, respectively .
compulsory car liability insurance is rigorously enforced, and about all motorists carry these policies, resulting in market impregnation for vehicle liability coverage. In addition, lenders require relevant property, ardor, fatal accident, and life indemnity policies at least equal to the measure of the collateralize spleen. Tunisians often purchase policy policies lone to obtain deposit loans. To expand the indemnity marketplace beyond products mandated by law is a challenge for all marketplace entrants .
According to the tunisian Federation of Insurance Companies, crying policy premiums, including for vehicle policies, were about $ 823 million or 2.1 % of Tunisia ’ s GDP in 2019 ; this is a degree considered low by the insurance industry and inadequate for proper policy coverage of the population. sum premiums increased by 7.2 % in 2019 compared to a year ago, however. The GOT ’ s reform efforts to enhance the indemnity market have focused on improvement of the fiscal health of insurance companies, updating of the country ’ s legal and regulative framework, exploitation of commercialize segments such as animation insurance and crop policy, upgrade of insurance companies, and opening the sector to greater contest.
Reading: Tunisia – Insurance
The insurance sector ’ s most significant regulative institution is the General Insurance Committee within the Ministry of Finance. The Committee is charged with protection of policy-holder rights and oversight of indemnity and reinsurance companies. other apposite institutions include the Central Office of Rates ( Bureau Central des Tarifications, BCT ), which fixes rates for liability indemnity premiums on vehicles ; the tunisian Federation of Insurance Companies, which is the trade association for the entire insurance and reinsurance sector ; and the Unified Office for Tunisian Automobile ( Bureau Unifié Automobile Tunisien ), which is the trade association specifically for vehicular indebtedness policy providers.
There are no foreign-equity plowshare restrictions in the tunisian indemnity sector, and alien companies may operate freely. Entrants into the market can establish a commercial presence by establishing a subsidiary company ( either wholly or partially owned ), forming a new company, or acquiring an already established insurance supplier. To be registered in the country, foreign insurers must receive approval from the General Insurance Committee within the Ministry of Finance. once approved, extraneous insurance suppliers can compete for indemnity lines and will be treated no less favorably than domestic services suppliers with respect to capital, solvency, reserve, tax, and other fiscal requirements.
Read more: The basics of auto insurance
Tunisia ’ s commitments under the WTO and EU Association agreements have led to a liberalization of the country ’ south insurance sector. For U.S. companies intending to invest in Tunisia, this sector may present opportunities, specially in non-life indemnity grocery store segments .
As an alternate to ceremonious policy, Zitouna Takaful, El Amana Takaful, and Al Takafulia – which trust on the Islamic “ takaful ” policy system of co-operative reimbursement in sheath of loss – were created to service the Islamic market. Foreign companies considering policy operations in the region should examine this new intersection .
Among the general population there remains restrict awareness of life indemnity and its benefits. The fiscal services sector does not even offer personal fiscal design to assist customers in the design of an appropriate insurance design. Both these areas should be considered for their long-run potential .
- Tunisian Federation of Insurance Companies (FTUSA)
- National Statistics Institute (INS)