The Algerian insurance sector reported a revenue of 102.75 billion dinars for the first half of 2026, marking a 3% year-on-year growth. Despite this, the industry faces structural financial instability characterized by a persistent accumulation of unpaid claims. As of June 30, 2026, the reserves for claims to be paid reached 132.79 billion DA, covering over 1.56 million pending files—an amount exceeding the entire sector's half-year output. While there was a minor 1% dip compared to the first quarter, the total backlog has increased by 3.2% since the end of 2025. The automotive branch remains the primary source of instability, accounting for 50.18 billion DA in arrears, exacerbated by soaring spare part costs and aggressive pricing competition. Meanwhile, a 12.4% drop in fire and miscellaneous risk insurance and the modest scale of personal insurance prevent any significant recovery, placing continued pressure on the solvency and profitability of insurers.