Morocco: Interest-rate hikes pose liquidity risk to insurers
Source: Middle East Insurance Review | Sep 2023
Life insurers in Morocco face liquidity risk because hikes in interest rates could encourage policyholders to redeem their savings insurance policies in search of a higher return, according to an annual report on financial stability.
The report, released jointly by Bank Al-Maghrib, the Insurance and Social Security Supervisory Authority and the Moroccan Capital Market Authority, said that the increase in the cost of living reduces the purchasing power of policyholders and their ability to save. M