Morocco: Auto insurers raise premium rates in step with compensation reform
Source: Middle East Insurance Review | Oct 2026
Motor insurers in Morocco have increased premium rates by an average of around 5% for mandatory auto third-party liability insurance, as part of the legislative reform of compensation for victims of traffic accidents.
The new pricing, effective since 4 August, applies to new policies as well as to renewed policies. However, contracts in effect are not affected by this increase until their expiry date.
The legislative reform provides for a gradual increase in the minimum wage used to calculate compensation. The regulatory authority has established pricing guidelines. The assessment of the impact of the new scale, based on market data, indicates an annual increase of approximately 5% over the period 2026-2030, representing a cumulative increase of “around 24% to 25%” in premiums, according to an estimate provided by the Moroccan Insurance Federation.
The reference wage, used as the basis for calculating compensation, had been frozen at MAD9,270 ($1,000) since 1984. Under the reform, the reference wage will rise to MAD14,270, representing a 54% increase, phased in over five stages.
The stated objective of the premium hike is to allow insurance companies to cope with the increased costs resulting from the revision of compensation amounts awarded to victims, while maintaining the financial balance of the system. M