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Mar 2024

Morocco: Insurance regulator outlines its busy agenda

Source: Middle East Insurance Review | Feb 2023

The Insurance and Social Security Supervisory Authority (ACAPS) is currently working on several projects to boost the insurance sector, according ACAPS director of insurance regulation and standardisation Abdelkerim Sahbeddine in an interview with the news site LesEco.
 
The projects include the implementation of the risk-based solvency and prudential framework; setting out strategic guidelines to promote digital insurance and to expand financial inclusion; digitising motor third-party liability insurance policies; and contributing to the legal framework for microinsurance and the overhaul of the insurance code as it relates to insurance distribution.
 
Insurance intermediaries
Considering the important role of insurance intermediaries in the development of the insurance market, and aware of the challenges they face that are marked by digital transformation, ACAPS undertakes several measures aimed at supporting insurance intermediaries. In particular, it initiated the amendment of the Insurance Code to give legislative effect to measures targeted at digitalisation in the intermediary sector, said Mr Sahbeddine.
 
The current network of insurance intermediaries in Morocco comprises 1,565 insurance agents and 473 insurance brokers. The intermediary sector saw an average annual growth of 3% over the past 10 years, said Mr Sahbeddine. Intense competition in the insurance distribution market and the digital revolution pose a challenge to insurance intermediaries, he said.
 
Intermediaries are urged to revisit their business models to be able to meet the various challenges and take advantage of the opportunities offered by digital transformation.
 
Updating the insurance law
Mr Sahbeddine said that for several months now, a joint committee made up of representatives of ACAPS and the finance ministry has been working on amendments to the insurance law. It was first necessary to converge the vision of the ACAPS and the ministry and decide on the axes of reforms to be undertaken before embarking on drafting the text of the revised law.
 
“Once this work is completed, we will launch consultations with the various stakeholders,” he said.
 
Among the objectives of the legislative changes is the establishment of a legal and regulatory framework for the future, anticipating future developments throughout the value chain, encouraging innovation and making it possible for the insurance industry to take full advantage of the dynamics induced by the digital revolution.
 
ACAPS has issued an instruction relating to the online sale of insurance products. This instruction clarifies regulatory requirements of online insurance business and safeguards the rights of policyholders. Today, insurance players, including insurance intermediaries, can carry out online sales and even digitise the entire value chain. M 
 
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