News Middle East26 Feb 2020

Morocco:Reinsurance being arranged for disaster insurance fund

26 Feb 2020

The Moroccan insurance market has set up an insurance scheme to cover three kinds of natural catastrophes besides terrorism.

The coverage is up to $300m per risk per year, according to local media reports.

The three types of Nat CATs covered are flood, earthquake and tsunami, said Mr Bachir Baddou, director-general of the Moroccan Federation of Insurance and Reinsurance Companies (FMSAR).

Reinsurance arrangements are being made for this risk with five global reinsurance companies, including Scor, Hannover Re and Swiss Re. The Moroccan government will facilitate the signing of the reinsurance agreements.

The government has set $50m as single risk retention locally, compared to $250m assigned to foreign international reinsurers.

Mr Baddou said that the disaster insurance fund will be financed through fees on insurance policies issued in the market, and other fees.

The Moroccan government approved a decree last year to give effect to the establishment of the disaster insurance fund. It has started to impose a new tax of 1% on premiums and contributions paid under insurance contracts, with the exception of life insurance contracts, to finance the fund. The scheme includes two insurance plans: the first offers cover to those insured for natural disasters while the second covers those who are uninsured.


 

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