Insurance intermediaries in Morocco must without delay reinvent their business model, including turning digital and looking at new sources of income, such as other classes of business that would contribute more to income, Mr Hassan Boubrik, president of the Supervisory Authority for Insurance and Social Security (ACAPS) has said.
He was speaking last week in Casablanca at the annual meeting of the National Federation of Insurance Agents and Brokers in Morocco (FNACAM).
He outlined to insurance intermediaries what he thought of their profession, its shortcomings and challenges, showed them leads and offered them help to face the risks that await them, according to a report by Le Matin.
He announced that, as early as next year, ACAPS would provide for a budget dedicated to insurance intermediaries that would be for training them on issues related to regulations and protection of policyholders.
Another axis of action of ACAPS in favour of these professionals is the simplification of interactions with them, through digitisation. The goal of ACAPS is to have paperless exchanges between itself and insurance companies and intermediaries.
Mr Boubrik told the insurance intermediaries that the regulator would not hesitate to support them in the transformation of their sector, and that the ball was now in their camp to begin the change.
Stating that while the insurance market in Morocco is doing well, Mr Boubrik identified several challenges facing the industry. In particular, the industry is mainly driven by life insurance (comprising 45% of the market), motor insurance (27% of the market), lack of customer trust of customers and a lag in compliance with international standards.
But the main challenge, said Mr Boubrik, is the need to look at other sources of income, taking into account the digital era which offers opportunities but also presents a threat for insurance intermediaries.
With digital platforms that offer customers information on insurance products, the consumer is empowered but insurance intermediaries risk losing market share, he noted. ACAPS is pushing for these professionals to start ancillary activities that are not in conflict with the profession and to offer new insurance products with more rewarding margins.