Algeria's draft finance bill for 2027 provides for replacing the Insurance Supervision Commission with an independent authority responsible for supervising insurers and intermediaries, according to article 223 of the text adopted by the Council of Ministers on 4 October.
The future Insurance Regulation and Supervision Authority would have legal personality and financial autonomy. It would exercise state oversight over insurance and reinsurance companies, licensed intermediaries and other players carrying out operations subject to sector legislation.
The reform remains conditional on final adoption of the finance law and publication of the texts needed to implement it. The current commission would continue to carry out its duties until the new structure becomes operational, which rules out an immediate transfer of supervisory powers.
The draft entrusts the authority with monitoring the regularity of operations and the solvency of insurers. It is expected to carry out ongoing and periodic inspections to verify that insurers have the resources needed to honour their commitments to policyholders and contract beneficiaries.
Its funding would rely on allocations from the state budget and on contributions from insurance and reinsurance companies, calculated pro rata to their turnover. Its composition, detailed organisation and functioning would be specified by regulation.
The government presents the new body's independence as a way to separate the state's regulatory role from its position as shareholder in several public companies. The Insurance Supervision Commission, set up in 2006, does not have the same institutional autonomy announced for the future authority.
For insurers, the change could alter the intensity and procedures of prudential supervision. For customers, the stated aim is to strengthen contract protection and oversight of insurers' capacity to pay claims, without the draft at this stage setting any new pricing or commercial obligations.