Morocco: Sustainable growth seen in 2019
Source: Middle East Insurance Review | Feb 2020
The Moroccan insurance market saw sustained growth last year, estimated industry professionals based on increases observed over the previous two years. Final figures for 2019 are pending from the Moroccan Federation of Insurance and Reinsurance Companies (FMSAR) and the Insurance and Social Insurance Supervisory Authority (ACAPS).
Estimates are that the life branch continued to outperform the market in 2019 with an increase of around 6% to 9%. Total life insurance turnover is estimated at around MAD20.5bn ($2.1bn) in 2019, according to a report by La Vie Eco.
Non-life growth was more limited and is estimated to have seen premiums written increased by 4% to 7%. Total non-life premiums are estimated at over MAD24.5bn in 2019.
According to the latest available official data, life business expanded by 9.9% to MAD10.4bn for the first six months of 2019. In the non-life segment, the premiums written stood at around MAD14.3bn in the first half of 2019, representing an increase of 7%.
Industry players believe that the market mainly benefits from increased awareness of insurance among the public and the importance of preparing for retirement.
However, insurance business in the country is showing slight signs of slowing down. This is the case with motor business which saw premiums grow by 7.9% for the first six months of 2019, compared to double-digit growth rates achieved in previous years.
In addition, premium growth does not necessarily mean profitable operations. According to insurance executives, the rise in claims, particularly in the automobile industry, increase in management fees and the poor performance of investments weigh on the financial results of the insurance market. M
MAD1 = $0.10