The Contribution of Digital Transformation to Expanding the Distribution of Insurance Services in Algeria: A Study Covering the Period 1995–2024

Abstract

This study investigates the extent to which digital transformation has contributed to expanding the distribution of insurance services in Algeria over the period 1995–2024. To examine this relationship, an econometric model was developed and estimated using the Autoregressive Distributed Lag (ARDL) approach. The empirical findings reveal a statistically significant positive association between digital transformation and the development of insurance services. Specifically, a one-unit increase in internet usage is associated with a 0.0027-unit increase in the growth rate of insurance premiums, which serves as a proxy for the level of insurance services.

The observed effect can be explained by the ability of digital technologies to improve access to insurance products while enhancing distribution and marketing channels. These improvements have contributed to a noticeable expansion in the volume of written premiums. Moreover, the increase in premiums should not be interpreted solely as a quantitative change; rather, it reflects the broader diffusion of insurance services and their growing accessibility to a wider range of economic agents, including both individuals and business entities. The results further indicate that this positive relationship is reinforced within a macroeconomic environment characterized by controlled inflation, thereby supporting financial stability and strengthening the contribution of the insurance sector to overall economic output.