In Algeria, takaful is authorised by Article 103 of the 2020 Finance Law and organised by Executive Decree 21-81, which allows dedicated companies or windows within conventional insurers, subject to a certificate from the national sharia authority.
From the 2020 Finance Law to the Official Journal
Article 103 of the 2020 Finance Law opened the door. The Council of Ministers approved the draft decree on 27 January 2021, and Executive Decree 21-81 of 23 February 2021 then appeared in the Official Journal of 28 February.
Dedicated company or window: two permitted forms
The decree allows either a company that writes only takaful business or a takaful window housed within a conventional insurer. It separates family takaful, for personal lines, from general takaful, which covers property damage and liability.
A separate fund and contributions treated as donations
Contributions are classed as tabarru and feed a participants' fund kept apart from shareholders' accounts. Every operator must have a sharia supervisory committee, whether it is a standalone company or a window.
The national sharia authority under the High Islamic Council
Approval of a takaful product falls under Article 227 of Ordinance 95-07. The file must include a compliance certificate from the national sharia fatwa authority for the Islamic finance industry, which has issued these certificates to operators since December 2021.
CNA and the Insurance Directorate: who does what
The National Insurance Council publishes market statistics and announced the first takaful licences in January 2022. The Insurance Directorate, part of the Treasury Directorate General, drafts the annual report, while the Ministry of Finance grants licences.
El Djazair Takaful, the state-owned general insurer
Announced in February 2022, L'Algérienne du Takaful Général brings together SAA, CAAR, CAAT, CASH and six public banks, including CNEP, BNA and BADR. Its first branch opened in Zéralda in January 2023; by end-2023 it had ten branches and over 2,100 members.
Family takaful from El-Djazair El-Moutahida
Set up in 2022, El-Djazair El-Moutahida Family Takaful focuses on personal lines: death, protection and savings. The company announced new products for the second half of 2023, relying on distribution through the public banks.
GAM, the country's first takaful window
Générale Assurance Méditerranéenne received its licence alongside CARDIF El Djazaïr in January 2022 and opened its window the following spring. It offers forty policies certified by the national fatwa authority and announced a new development phase in January 2026.
Salama, CNEP and other distribution channels
According to Middle East Insurance Review, Salama Assurances has also offered takaful since 2021. CNEP-Banque signed two takaful agreements in April 2023, making cover easier to reach for customers using the public banks' Islamic home financing.
Volumes still small but rising fast
In 2023, gross takaful contributions reached 214.8 million dinars, of which 129.6 million in general lines, about 1% of a 169.6 billion market. The CNA later reported growth of more than 70% in volumes and members during 2025.
Tax and retakaful: the recent levers
The 2024 Finance Law introduced tax measures favourable to takaful. On reinsurance, 80.5 million dinars were ceded in 2023; Islamic reinsurance lets young Algerian funds carry large risks without turning to conventional treaties.
How Algeria compares with its Maghreb neighbours
Unlike Tunisia, which has required separate companies since 2013, Algeria permits windows. Its model also differs from takaful insurance in Morocco, overseen by ACAPS and the Higher Council of Ulema, where products only went on sale in mid-2022.
Taking out a takaful policy in Algeria, step by step
- Check that the company or window holds a takaful licence from the Ministry of Finance, as announced notably by the CNA.
- Ask for the national sharia authority certificate specific to the product, which is required for its approval.
- Choose between general and family takaful depending on the need: vehicle, home, death cover or savings.
- Compare the contribution, the share taken by the operator and the rule governing the fund's surplus.
- Go through a branch or a partner bank such as CNEP when the purchase involves Islamic financing.
- Report any claim within the contractual deadline, with the supporting documents the branch requests.
Components of an Algerian takaful contribution
| Component | Role | What makes it vary |
|---|---|---|
| Tabarru to the participants' fund | Pays claims within the insured community | Type of risk, value of the asset, age of the insured |
| Operator's remuneration | Covers management by the company or window | Model chosen and rate set in the contract |
| Cost of retakaful | Protects the fund against major losses | Volume ceded, 80.5 million DZD in total in 2023 |
| Underwriting surplus | May be returned to participants under the rules | Claims experience for the year and required reserves |
| Deductible | Share of the loss borne by the member | Level chosen at inception |
What to bring to an Algerian branch
- National identity card or passport
- Recent proof of residence
- Vehicle registration document for motor takaful
- Title deed or tenancy agreement for home cover
- Health questionnaire for family takaful
- Murabaha or ijara contract signed with the bank where financing is involved
Traps to avoid in the Algerian market
- Confusing a conventional insurer's takaful window with an ordinary policy from the same company, when only the window manages a separate fund.
- Accepting a so-called Islamic product with no national sharia authority certificate, even though one is required for ministry approval.
- Forgetting that motor third-party liability remains compulsory, whether you choose takaful or a conventional policy.
- Relying on an old, unverified insurer website instead of a physical branch or a partner bank.
- Overlooking the written rule on the fund's surplus and assuming an annual rebate is guaranteed.
Common questions about takaful in Algeria
Which law authorises takaful in Algeria?
Article 103 of the 2020 Finance Law authorises takaful business. Executive Decree 21-81 of 23 February 2021, published in the Official Journal of 28 February 2021, sets out the conditions, the permitted forms and obligations such as keeping funds separate.
Which companies offer takaful today?
Sources cite El Djazair Takaful for general lines, El-Djazair El-Moutahida Family Takaful for personal lines, the GAM and CARDIF El Djazaïr windows licensed in 2022, and Salama Assurances. An Alliance Assurances window has been mentioned but is unconfirmed.
How big is takaful in the overall market?
Still small. In 2023 it accounted for about 1% of premiums, with contributions of 214.8 million dinars. The stated medium-term target is 5%, and the CNA recorded growth of over 70% in 2025.
Who certifies that products are sharia-compliant?
The national sharia fatwa authority for the Islamic finance industry, attached to the High Islamic Council, issues the certificates. Each operator also has its own supervisory committee, as required by Decree 21-81.