The National Federation of Insurance Agents and Brokers in Morocco (FNACAM) has rejected a professional examination for brokers being organised by the Supervisory Authority of Insurance and Social Security (ACAPS) to be held early next year.
The Federation also calls for an evaluation of the sector before opening it up to new practitioners as well as moves to tackle the problems the sector faces.
ACAPS announced the holding of the professional exam for insurance brokers after a two-year hiatus, starting on 13 February 2018.
Commenting on the situation, Mr Youssef Bounoual, President of the Moroccan Union of Insurance Agents and Brokers (UMAC) told local media: “The insurance brokerage market is not prepared to accept new brokers and insurance agents, but if the professional exam is aimed at settling the legal status of the insurance companies’ direct offices, this is something that we do not reject and have no problem with,” he said.
“We consider that the number of insurance brokers currently in Morocco to be sufficient under the current circumstances, and therefore oppose dumping cities with new intermediaries,” he added.
According to the Federation, Morocco has about 2,000 insurance brokers, including 1,500 agents and 500 intermediaries, who receive a commission of no more than 10%.
In February 2015, the Moroccan Union of Insurance Agents (UMAG) had categorically rejected a decision of the then Directorate of Insurance of the Ministry of the Economy and Finance for an entrance examination for agents.
In May this year, FNACAM called for a revision of the remuneration system, mainly in automobile business, to provide intermediaries with realistic and decent commissions. The system has been unchanged since 1989.
FNACAM was established in 1993 from the merger of Gicar (Interprofessional Grouping of Insurance and Reinsurance Brokers) and Unacam (National Union of Insurance Agents and Brokers). It represents some 600 insurance intermediary firms of all sizes. In terms of turnover, the members of FNACAM represent about 75% of premiums written by the market.
UMAC was established following the change in status of the UMAG after the creation under a 2012 law of ACAPS, with the aim of protecting insurance intermediaries. M