The insurance sector in Morocco called upon to meet several challenges

The main challenges of the sector concern three main points, in this case, the implementation of the solvency project based on risks (SBR), the generalization of AMO and the start of Takaful, noted Mrs. El Moussyli who intervened during a webinar organized by the Casablanca Stock Exchange in collaboration with the APSB, under the theme “Insurance sector perspectives.”

As for the SBR, the effective implementation of which is planned for the year 2025, it is an approach that takes into account all the risks faced by operators in the calculation of the solvency margin, she said, adding that this could reduce the excess margins of Moroccan insurers.

In the same context, she affirmed that other challenges await the sector and not the least, namely the arrears of intermediaries’ premiums which amount to 3 billion dirhams and which are concentrated mainly on the automobile branch, specifying that all the solutions put in place to settle this litigation were unsuccessful and this resulted in the recognition of significant provisions by the insurance companies.

As for the generalization of the AMO, the analyst pointed out that this would not be without impact both on the supply of the sector and on the NR. “The impact on turnover should be negative due to the migration of a category of customers to the public sector. On the other hand, the impact relating to RN can be positive in the sense that the generalization of AMO should push insurance companies to switch to complementary products that are much more profitable than basic ones,” she explained.

The analyst also noted that the insurance sector in Morocco, the second largest insurance sector in Africa, is now one of the most dynamic markets in the region, and is gaining momentum. from year to year.
Quantitatively speaking, the penetration rate of this sector increased from 3.7% in 2017 to 4.5% in 2020, i.e. a rate that is still quite high compared to the average penetration rate of emerging countries in the EMEA region, she said, noting in the same direction that the premiums issued have grown by more than 20% between 2017 and 2021 to nearly 50 billion dirhams (MMDH).

By branch, the overall turnover of the sector comes up to 53% from the non-life branch and the rest comes from the life branch, she explained, while specifying that with regard to the shares of markets of the main insurance companies, Wafa Assurances is at the top of the ranking, followed by RMA.

Dwelling on the evolution of commercial activity over the past three years, El Moussyli said that it highlights a good performance of the sector with an increase in premiums issued by 10% to 50 billion dirhams (MMDH) in 2021 and an improvement in life insurance of nearly 13% to 23 billion dirhams.

(with map)

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