Morocco: Insurers deemed vulnerable to bank failures

Source: Middle East Insurance Review | Sep 2018

The exposure of insurers in Morocco to the banking sector is seen as significant with the insurance sector more dependent on the banking industry than the converse.

This is a finding made as a result of stress tests to assess the vulnerability of financial institutions. Bank Al-Maghrib, Morocco’s central bank, and Insurance and Social Insurance Supervisory Authority (ACAPS) delivered the results of the stress tests.

Three contagion stress tests were carried out, including one on the interconnections between banks and insurers based on a sample of eight banks and five major insurers, reported Bourse News.

The results of the tests confirm the vulnerability of insurers to bank failures explained by the level of their exposures to banks. These exposures consist mainly of equity and ownership securities (72%), marketable debt securities (13%) and deposits (16%). M

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