The newly appointed head of Morocco's insurance regulator has cited insurance legislation and the organisation of regulatory and oversight functions as his top priorities.
Mr Hassan Boubrik, appointed Chairman of the Supervisory Authority of Insurance and Social Security (ACAPS) in early February, said in an interview with local media that bills are being discussed to amend the Insurance Code and for a law covering mutual societies.
“In the long term, it is fundamental to transform the Insurance Code to allow the sector to modernise, renovate and expand coverage and products,” he said.
The current amendments to the insurance law will introduce the principle of risk-based solvency, improve the governance of insurance and reinsurance undertakings, and increase transparency. In addition, the amended law will establish a legal framework for takaful, and make construction all-risk and decennial liability insurance mandatory.
Mr Boubrik's second priority to organise ACAPS includes putting in place its various organs, which include a council and various regulatory and disciplinary committees. Rules will have to be approved for ACAPS to operate in accordance with the law. The work includes setting out an ACAPS organisation chart and laying down various processes.
ACAPS, an independent authority, was set up recently to replace the Department of Insurance and Social Welfare (DAPS), which was under the Ministry of the Economy & Finance. With the impending new insurance law, which will provide a new legal framework for supervision, ACAPS' operational framework will be more flexible, allowing the Authority to adapt to developments in the insurance and pension sectors. ACAPS will also regulate pension funds, which was not under the purview of the DAPS.
On what else needs to be done in the insurance sector, he said: “The idea is to move more towards modernisation. We must focus on the protection of policyholders, not only in terms of the creditworthiness of companies, but also in the relationships between the various stakeholders. We currently have big players which can invest and support all the projects that we will implement.”