Morocco: Takaful market could make debut with 2 operators
Source: Middle East Insurance Review | Apr 2019
The Moroccan takaful market could start with two operators only, after legislation and regulations have been passed, a move which is expected by the end of June, according to Mr Hassan Boubrik, president of the Insurance and Social Security Supervisory Authority (ACAPS).
He said the size of the Islamic insurance market at its startup phase would not allow for several operators, reported Boursenews. “It would not make sense to have 10 operators to start the business. Two seems to me the correct figure,” he said.
He added, “Insurers are reasonable and do their calculations. On our part, we will ensure that the viability of operators is ensured.”
He said the Bill introducing takaful to Morocco had already been passed on 5 February by the first chamber of Parliament. “Once everything is completed, we will process applications for approvals in Q3 and Q4 of this year,” he said.
He said insurers must organise themselves together for takaful business to be profitable. The pooling of certain management processes such as support functions with conventional insurers is desirable, and makes it possible to quickly overcome issues of return on equity, he said.
This is a feasible approach, especially since the majority of players who intend to operate in takaful are already present in the conventional insurance segment, Mr Boubrik said. M