Insurance

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ISSN： 1758-2830

Source： The Report - Tunisia, Vol.2008, Iss.1, 2008-08, pp. : 83-92

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Abstract

The insurance sector is well-organised and structured, and performs modestly well. However, it remains handicapped by a lack of dynamism and it lies behind the curve on modernisation. Despite seeing regular growth in all the key indicators, the Tunisian insurance sector constituted under 2% of the total national economy. To increase that percentage, efforts are now being made by the government to upgrade management within the industry, making it more efficient and improving the quality of services and products on offer to customers. At the same time, its regulatory framework is being brought in line with international standards. One of the aims of this policy is to ensure that local companies can compete with the predicted increase in the number of overseas players operating on Tunisian turf. Taking the sector segment by segment, motor insurance, accounts for the largest part of the market, although it continues to record losses, and efforts at diversification have been slow to materialise in what is still a closed market. Life insurance, despite new regulations brought in to aid it, is struggling. To the future, privatisation and increased foreign competition is on the agenda - take as proof the fact that Star has opened its capital to foreign investment and is seeking a partner to buy a 35% stake. Regulatory reforms and the privatisation of Société Tunisienne d’Assurance et de Réassurance (STAR) should shake up the sector and increase its importance to the economy. In this chapter, Mohamed Dkhili, President, FTUSA, and CEO, Tunis Ré, provides a viewpoint on life insurance.