Parametric Insurance Against Climate Risks in Algeria: Theoretical foundations and conditions for viability

Kokene, Camelia; Tessa, Ahmed

التكامل الاقتصادي
Volume 14, Numéro 2, Pages 403-418
2026-06-12

Parametric Insurance Against Climate Risks In Algeria: Theoretical Foundations And Conditions For Viability

Authors : Kokene Camelia . Tessa Ahmed .

Abstract

Today, Algeria is facing a gradual intensification of climate hazards, including droughts, floods, and forest fires. The frequency and scale of these events have highlighted the limitations of the traditional insurance system, which struggles to cover increasingly complex and recurring risks. In this context, parametric insurance, based on predefined objective indices, represents a promising alternative. In this article, we will examine the theoretical basis for parametric insurance, provide an overview of its international development, and analyze the conditions for its implementation in Algeria across several dimensions: technical, institutional, regulatory, and sociocultural. The results show that, despite the existence of real opportunities, several obstacles remain to be overcome for its successful introduction. In conclusion, we will offer some recommendations.