Regulations in Morocco have failed to keep pace with the evolution of risks in the country, according to Mr Aziz Derj, president of the Association for Risk Management and Insurance for Enterprises.
He said that insurance companies have been offering products nationwide covering new or emerging risks. The problem lies with regulations that do not promote the development of such insurance products.
Risks that have emerged include cyber attacks and terrorism. He said, “Today, one speaks about risks related to climate change, natural disasters, the water crisis, fraud, and theft of data.”
In an interview with EcoActu, he said, “In general, businesses subscribe only to compulsory insurance. Very few of them are aware of or outsource the management of certain risks to which they are exposed. And insurance brokers should work with businesses in advising them to insure a particular risk. It is therefore an ecosystem that takes time to develop.”
In addition, it should not be forgotten that the penetration rate of insurance in the commercial sector is low, he said. Many businesses do not even cover traditional risks such as fire or business interruption. “Overall, it's still embryonic,” he said.
He added that Morocco also does not yet have an integrated risk management strategy. “We often talk about one-off actions scattered over time and space. We manage from day to day.”
Mr Derj said that his association tries to make risk managers and insurance companies aware of the evolution of risks, both at home and abroad. “In our association, we offer specific training to provide the necessary skills to those who work in risk management so that they can help business leaders better manage inherent issues.”
He said that insurers must use new risk assessment tools and propose new solutions. And it is necessary that legislators play their role.