Insurance premiums are expected to increase soon, as the government is planning to increase the tax rate to strengthen the Solidarity Fund against Catastrophic Events (FSEC).
In a meeting on 28 August 2025, the Government Council adopted a draft decree to increase the disaster solidarity tax imposed on insurance premiums by half a percentage point from 1% to 1.5%, according to local media reports.
The tax revenue raised is used to finance the Solidarity Fund against Catastrophic Events (FSEC), a pool designed to provide compensation to uninsured victims of natural disasters.
With this measure, the government intends to strengthen the financial capacity of the Fund, says the decree, which was tabled by Minister of Economy and Finance, Nadia Fettah.
The reason for the higher tax rate is the "significant increase in the number and intensity of natural disasters worldwide, which has led to an increase in the cost of reinsurance". One significant disaster in Morocco is the September 2023 Al Haouz earthquake, which doubled the Fund’s seismic coverage costs.
The tax applies broadly across insurance branches, encompassing maritime and aviation vessels, motor vehicles, assistance operations, accident and health coverage, fire and natural elements protection, agricultural insurance, and general risk policies. Life insurance contracts and retirement pensions held by non-residents remain exempt, along with policies covering foreign risks or enterprises based abroad.