Morocco: Regulator to promote financial inclusion and innovation in digital drive
Source: Middle East Insurance Review | Dec 2020
Two issues - financial inclusion and innovation - will be highlighted when the Supervisory Authority of Insurance and Social Welfare (ACAPS) looks at implementing a digital insurance distribution strategy.
The overall aim is to modernise the distribution of insurance products, without sacrificing the network of intermediaries, according to a report by Finances.
ACAPS president Hassan Boubrik told Finances that one cannot claim to want to distribute microinsurance products while having the costs of a traditional network. He said that this is why it is necessary to open up distribution to payment establishments, telecom operators and to use mobile payments while simplifying contracts and products.
The objective is financial inclusion, that is, to promote the penetration of insurance in households which have low incomes.
Another focus is on innovation and quality of services, including of traditional insurance products. “We cannot imagine in insurance operations that are handled only on paper, with tools from 30 or 40 years ago,” Mr Boubrik said.
For example, in life insurance, ACAPS has directed that life insurance statements be issued quarterly on paper, except for companies that have a computer application on smartphones, made available to customers. Discussions are underway between the regulator and insurance companies to see the precise information that must appear on these statements. “We hope to resolve all this in the coming months,” he said.
In the meantime, ACAPS has brought together the various players in the sector — the Ministry of Finance, the Moroccan Federation of Insurance and Reinsurance Companies and the National Federation of Agents and Brokers of Morocco — to conduct a study on distribution in the digital age. This study is scheduled to be finalised by the end of the year, following which the implementation work will start. M