Morocco: Multi-agency coordination panel finds insurance sector resilient despite COVID-19
Source: Middle East Insurance Review | Feb 2021
Despite the COVID-19 pandemic, the insurance sector in Morocco continues to demonstrate strength and growth both in the life and non-life markets, according to a statement issued by the Committee for Coordination and Surveillance of Systemic Risks (CCSRS).
At a meeting in late December 2020, the CCSRS reviewed the status of the inter-authority financial stability roadmap covering the period 2019-2021 and analysed the mapping of systemic risks weighing on the national financial system, in the context of the COVID-19 pandemic.
The review indicates that the Moroccan financial sector is resilient despite the pandemic and its economic repercussions.
The main findings are that for the insurance industry, at the technical level, in the first 10 months of 2020, revenue grew 2.7% y-oy, with an increase of 1.4% for the life branch and 3.7% for non-life. Claims should fall in line, particularly with the suspension of economic activity during the lockdown period.
At the financial level, the investments of insurance companies grew by 4.4% to MAD192.4bn ($21.7bn) and unrealised investment gains continued to improve with the stock market recovery.
However, for the first six months of last year, insurance companies recorded a decrease of 25.2% in their net results, mainly because of the underperformance of financial activities during the first half.
In addition, the sector continues to generate a solvency margin well above the regulatory minimum. The excess margins should, however, see a significant decline with the switch to a risk-based capital framework. M
MAD1 = $0.11