The Moroccan Federation of Insurance and Reinsurance Companies (FMSAR) and the National Federation of Insurance Agents and Brokers of Morocco (FNACAM) have announced measures to support insurance agents and brokers in the current difficult business conditions brought about by the COVID-19 pandemic.
In a press release, the two institutions revealed the activation of a credit line for general agents whose annual turnover in commissions is less than MAD1m ($98,000). Potentially 1,270 agents are eligible for the credit line.
Similarly, low interest-rate loans are made available to insurance brokers which have a turnover in commissions of less than MAD1m per year. Around 280 brokers are eligible for the loan facility.
The credit facilities are intended to cover the operating expenses of agents and brokers during this period, allowing them to pay the salaries of their employees, maintain their viability and ensure continuity of services for their customers.
An FNACAM-FMSAR committe will monitor the implementation of this support scheme and will hold coordination meetings to provide the most appropriate solutions, according to developments in the distribution network during this period. Communication channels dedicated to this system have been set up to answer the various questions of insurance intermediaries by email and by phone.
This scheme was set up in consultation with the Insurance and Social Security Supervisory Authority (ACAPS). All beneficiaries will be reported to the insurance regulator for monitoring.
Details of the scheme
Insurance agents in difficulty who wish to benefit from the credit line must follow an application process communicated to them by the insurance companies they represent.
Insurance brokers in difficulty will be able to enjoy credit facilities at the preferential rate of 2% excluding taxes, to finance their overheads for a maximum period of three months.
The loan covers up to three months of overheads, capped at MAD100,000 for brokers. The loan is for a term of 12 months, after which it may be repaid in full or in monthly instalments over 12 months. No guarantor is required.
All intermediaries wishing to benefit from this support system must present a report on their overheads, based on financial statements for 2019, or 2018 if the former are not yet available.