Morocco: Insurance premiums to exceed $7.4bn by 2023
Source: Middle East Insurance Review | Jun 2018
A new road map for the insurance industry, currently being prepared, projects that annual premiums will hit MAD70bn ($7.4bn) to MAD80bn by 2023. In comparison, the total turnover of the Moroccan insurance sector was close to MAD40bn in 2017.
Mr Bachir Baddou, director general of the Moroccan Federation of Insurance and Reinsurance Companies (FMSAR) said the road map has been discussed informally for several months, including with the Insurance and Social Insurance Supervisory Authority (ACAPS), reported La Vie Eco.
The new five-year road map will focus on raising the technical standards of the sector to enhance its resilience, adapting to new technologies, expanding the population covered, and covering risks that are not yet insured. The penetration rate is expected to reach 10%, compared to 3.5% at present.
Adopting the best international standards in the areas of solvency and governance, the international expansion of Moroccan insurers, especially in Africa, will also shape the insurance sector.
To keep pace with the goal of universal population coverage, new distribution channels will be integrated into the road map. In this, the distribution of non-life products will be extended to bancassurance, which until now is used to distribute life products. Distribution will also be carried out through digital channels. M
MAD1 = $0.11